The industry is coming out due to the impact of the Corona epidemic. That’s why the demand for good talent has increased a lot. To attract talent, companies are offering double or triple salary. This has increased the difference between the salaries of the employees.
TCS has changed its strategy regarding employees. The company is focusing on enhancing the skills of its employees. The salary of the employees performing well in the new skill will be doubled. The company has more than 6,00,000 employees worldwide.
Instead of hiring new employees at higher salaries, the company is finding this strategy better. The industry is now coming out of the influence of Corona. This has increased the trend of employees leaving the job. The hiring of new employees is being done with 80-120 per cent increment.
Trying to reduce the difference between income
TCS Chief Human Resources Officer (CHRO) Milind Lakkad told Moneycontrol, “Employees have been patient in the last two years. We saw employees leaving because they were offered higher salaries elsewhere. We did, but our increment was not that much. But, some increment was definitely given. We also tried to compensate the loss to the employees in other ways. The aim was to reduce the inequality within the company.”
Job loss trend continues
The trend of leaving the job is still going on. TCS has found an in-house solution for this. The company is on-boarding more employees under its existing program. He is being given a chance to double his salary. However, the number of employees clearing these high level programs in the first attempt is still only 10% annually.
Opportunities to double salary for employees
Employees took advantage of the opportunities to double-triple their salary by changing jobs after getting less than 10 per cent increment. Such opportunities rarely come once in a lifetime. The reason for this was the use of technology and digital transformation in client companies in the last two years. In view of the shortage of talent, IT services companies are offering higher salaries to the newly hired employees. However, due to this, unhappiness is increasing among the existing employees.
More increment to CEO level employees
According to a previous Moneycontrol report, the gap between the salaries of senior employees and entry-level employees in companies has widened over the years due to hiring of new employees and other reasons. While the average salary of CEOs has increased by 835 per cent between FY12 and FY22 from Rs 3.37 to Rs 31.5 crore, the average salary of entry-level employees has increased by only 45 per cent during this period. It ranges from 2.45 Lakh to 3.55 Lakh annually.
Consideration of giving 100 percent variable pay
Lakkar said about this that the company is considering increasing the salary of freshers employees. We want to give 100% quarterly variable pay to the employees especially the junior level employees. He said, “As far as senior employees are concerned, they are also affected. But they are not affected for most of the time. Fell.”
Regarding the annual increment, he said that the company has given increments of around 12-15 per cent, 8 per cent, 5 per cent and 1.5 per cent depending on the performance of the employees. Do we need to do more than this to close the income gap?
Elevate has 4,00,000 registered employees
TCS’ flagship program Elevate has over 4,00,000 registered employees. He has 0-12 years of experience. Employees with three years of experience have to do a special program of TCS. In this they are helped to become complete professionals. They are also given training in soft skills. Those who clear it are sent to the next program. Then his salary doubles.
Freshers salary in TCS
Right now there are two types of salary for freshers in TCS. The annual salary in Ninja Pay category is Rs 3.36 lakh. The annual salary in the digital category is Rs 7 lakh. Employed 44,000 freshers in FY23. Lakda believes that employees with 4-12 years of experience become specialists after the completion of the programme. His specialization can be in Technology, Cyber Security, IoT, Analytics and AI.
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