Last Updated: July 12, 2023, 16:35 IST
In a good news for Tata Consutency Services (TCS) employees, the software services exporter has announced its annual salary hike.
“We have gone ahead and rolled out our annual salary increase with effect from April 1st. Our operating margin of 23.2% reflects the 200-bps impact of this hike, offset through improved efficiencies,” TCS CFO Samir Seksaria said.
The company has given a 12-15 per cent raise for exceptional performers in the latest annual compensation review, and also commenced the promotions cycle.
TCS on Hiring
The IT major indicated that it will not be very aggressive in hiring this year, and will instead focus on utilizing the people it has taken onboard last year.
“While we are committed to honor all the offers we have made, our focus will be on leveraging the capacity we built last year,” Milind Lakkad, Chief HR Officer of the company said.
The company, as such, net hired just 523 new employees during the three months ended June, taking its total workforce to 6.15 lakh.
This comes close on the heels of unprecedented hiring done by IT companies over the last two years as they struggled to cope with a sudden surge in contracts from the US and European markets.
The fight for talent had led to high levels of attrition in the IT industry. But Lakkad said the situation is expected to return to normal by the second half of the current year. As of the end of June, attrition was at 17.8% on a 12-month basis.
“Our attrition continues to trend down and we expect it to be back in our industry-leading, long term range in the second half of the year,” he said.
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