Veteran IT company, Tata Consultancy Services (TCS), recently declared a salary increase for its employees, effective from April 1, 2023, despite the prevailing slowdown in the IT sector caused by the Global Economic Crisis.
TCS Reports Salary Hike in Q1 Results Announcement
During the announcement of its first-quarter results, TCS Chief Financial Officer (CFO) Sameer Seksaria revealed that the company had implemented a salary increase for its employees since April 1, 2023.
The salary hike has led to a 200 basis point impact on the operating margin, which currently stands at 23.2 percent.
Furthermore, TCS awarded a salary hike ranging from 12 to 15 percent to outstanding performers along with promotions.
TCS Witnesses Employee Growth and Reduced Attrition
In the first quarter of April to June, TCS onboarded 523 new employees, signifying positive growth.
The company also reported a decrease in the attrition rate, indicating a decline in employee resignations.
As of June 30, 2023, TCS now boasts a workforce of 615,318 employees.
However, the hiring process has slowed down due to the global crisis and the IT sector’s slowdown.
TCS’s Diverse Workforce and Focus on Talent Development
TCS employs citizens from 154 countries, with women comprising 35.8 percent of its workforce.
Milind Lakkar, spokesperson for TCS, emphasized the company’s commitment to developing top talent, retaining employees, and providing rewards.
Notably, 55 percent of the workforce now follows a three-day office workweek.
TCS’s Salary Hike Decision Contrasts Reports of Salary Delay in Infosys
While TCS implemented a salary hike, reports emerged suggesting that another major IT company, Infosys, had postponed its decision on salary increases.
This contrast highlights the impact of the global crisis on the IT sector.