TCS Beats Wipro and Infosys at Employee Attrition! Gives Respite to IT Freshers

TCS beats Wipro and Infosys! It announces full variable pay for 70% of its employees

The attrition rate in the IT sector has been rising consistently and has now reached an all-time high. This scenario is playing out at all the top information technology companies. Tata Consultancy Services (TCS), the largest IT services company in India, would pay only 70 % of its employee's variable pay in the second quarter of 2022, while others would be paid variable pay depending on their 'business unit's performance, the company announced during their latest earnings call on Monday. This shows TCS beats Wipro and Infosys at IT employee attrition.

"We are going to pay 100 % variable pay for 70 % of employees, the remaining 30 % will get paid based on their business unit performance. This is for Q2 (July-September)," said Milind Lakkad, a chief human resource officer at TCS during the analyst conference call after announcing the company's financials for the quarter that ended September 30.

The Mumbai-based IT major last month asked its employees to work from the office for at least three days a week. The company stated on Monday that a third of its workforce of 6,16,171 people have returned to the office twice a week.

The company also said that it has brought on board 20,000 freshers this quarter, and "honored" all the offers made amid a larger industry trend of delaying fresher joining due to a weak demand environment.

"Reflecting our culture of being committed to our employees, we have honored all the job offers we had made…" Lakkad said.

Meanwhile, TCS' attrition rate jumped to 21.5 % compared to 19.7 % last quarter, however, the company pointed out that attrition will be on a "downward" trend from here on. "We believe our quarterly annualized attrition peaked in Q2 and should see it taper down from this point, while compensation

expectations of experienced professionals moderate," said Lakkad. In this quarter, the IT firm made a net addition of 9,840 people and recruited around 20,000 freshers. Further, it plans to hire 45,000-47,000 freshers in the current fiscal year out of which it has already hired 35,000 so far.

The Indian IT industry has also witnessed a rise in attrition. As per reports, the IT industry has seen attrition at an average rise of 25%. Various IT giants like TCS, Infosys, Wipro, and more are doing their level best to fight attrition and retain employees. From offering higher salaries to engaging employees in numerous activities, tech giants are trying every way to retain their employees. While some companies offer their employees benefits, other tech giants offer what their employees are looking for – work from home. TCS has also established Hot Desk and Occasional Operations Zones (OOZ).

TCS posted its highest-ever quarterly staff increase. The net employment at TCS in the fourth quarter was 35,209, the highest quarterly net addition. With 592,195 employees, the annual net addition was 103,546, also an all-time high.

With the demand for technology on the rise, the need for top tech talent has also increased. It has become important for tech giants to have the best tech talent in their workforce. And with the attrition on a brimming rise, Indian IT giants must retain their crème de la crème, while also attracting top talent.