IT sector giant TCS has asked its employees to pay full variable this time. While TCS’s rival companies had cut the payment of employees, this giant company has announced to pay the full variable to most of the employees.
New Delhi. There is big news for the employees of the Indian company Tata Consultancy Services (TCS), the giant of the IT sector. This time the company has made a plan of 100% variable payment. In the results released a day earlier, the company’s net profit increased by 8 percent to more than 10 thousand crores in the last quarter.
The company’s Chief Human Resource Officer Milind Lakkar has announced this after the company’s quarterly results were released on Monday. He told that in the second quarter of the current financial year, the company is going to pay 100% of the variable to 70 percent of its employees. The remaining 30 per cent employees will be paid variable based on their performance.
Wipro and Infosys cut
TCS’s rivals Wipro and Infosys had cut variable payments to their employees in the first quarter. In Wipro, its senior employees were paid variable, while junior employees were paid only 70 percent of the amount. Similarly, Infosys also cut its employees’ variables and paid only a maximum of 70 per cent of the amount.
TCS had done bumper recruitment
TCS had recruited 20 thousand freshers in July-September this year and in the first half of 2022, the total number of freshers reached 35 thousand. Earlier, the company had talked about recruiting 40 thousand freshers. TCS has said that now the company will recruit 10 to 12 thousand more employees. HR chief Lakkar said, the company will set a new target only after the third quarter.
Hiring became less sluggish due to reduction in attrition rate
The attrition rate in the IT sector is now decreasing, which has also slowed down the hiring process. Till a few months ago, the attrition rate in the company was 21.5 percent, which is normally 19.7 percent. At present, the recruitment of employees in the IT sector has been sluggish, but TCS can still hire more freshers. Lakkad said, the attrition was at its peak in the second quarter, which has become quite sluggish now.
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