TCS gives 12 to 15 per cent salary hikes to best performing employees, commences promotion cycle 

By Ankita ChakravartiIt’s the appraisal season and some IT companies have started rolling out hikes. While some companies like Infosys and HCLTech have deferred salary hikes, TCS has given good pay raises to employees.

As per ET Markets report, Tata Consultancy Services (TCS) has decided to give its employees a raise in salary, even though it caused a slight drop in the amount of money the company makes. TCS’s Chief Financial Officer, Samir Seksaria, explained that they implemented the salary increase starting from April 1st. This caused the company’s operating margin to decrease by 200 basis points, which means the profit they make from their operations was a little lower. However, TCS believes they can make up for this by finding ways to be more efficient.

“We have gone ahead and rolled out our annual salary increase with effect from April 1st. Our operating margin of 23.2 per cent reflects the 200-bps impact of this hike, offset through improved efficiencies,” TCS CFO Samir Seksaria said.
TCS recently looked at how much they pay their employees and decided to give a 12-15 per cent increase to those who are doing exceptionally well. They also started promoting some of their employees. TCS mentioned that fewer people are leaving the company, and they expect to get back to their usual levels of people leaving in the second half of the year.

In the three months from April to June, TCS saw even fewer people leaving their IT services. Only 17.8% of employees left in the past year. They also hired 523 more people, so their total number of employees is now 615,318. TCS is proud of how diverse their workforce is, with people from 154 different countries. They are also happy to have 35.8% of their employees being women.

TCS is determined to support and reward their top employees. They want to improve their productivity by having employees come back to the office and encouraging their company culture. TCS’s Chief HR, Milind Lakkad, said that their initiative to bring employees back to the office is going well. Right now, 55% of their employees are already coming to the office three times a week.

TCS wants to assure everyone that they will honor all the job offers they made. They also plan to make use of the resources they built up last year. This announcement from TCS about the salary increase is in contrast to reports that Infosys, another major Indian tech company, has postponed their salary increases. This is because the global economic situation has made it difficult for tech companies to find customers for their services.