In the June quarter, Tata Consultancy Services (TCS) witnessed a significant decline in its attrition rate, reaching the lowest level in the past five quarters at 17.8 percent. The drop in attrition is seen as a positive trend for the company, indicating that employees are opting to stay with the organization. Milind Lakkad, TCS Chief HR Officer, expressed confidence that the attrition rate will return to its industry-leading, long-term range in the second half of the year.
Lakkad emphasized TCS’s commitment to nurturing and rewarding top talent in the industry. As part of their strategy to enhance employee effectiveness and uphold the company’s culture, TCS is actively encouraging employees to return to the office. So far, 55 percent of the workforce has already resumed office work three times a week, and this initiative is gaining momentum.
Regarding appraisals, TCS recently conducted its annual compensation review and awarded a 12-15 percent raise to exceptional performers. Additionally, the promotions cycle has been initiated to recognize and reward employee contributions.
The company’s focus on upskilling and learning remains strong. During the quarter, TCS employees dedicated a total of 12.7 million learning hours to enhance their skills in market-relevant areas such as generative AI, cloud computing, data, and analytics.
Amid reports of project commencement delays, TCS clarified that while it remains committed to honoring all offers made to lateral hires with 1.8 to up to 15 years of experience, the company is leveraging the capacity it built last year to manage the onboarding process efficiently.
Despite the positive developments in employee retention and learning initiatives, TCS reported the slowest June quarter growth in a decade when excluding the COVID-19 period. Nevertheless, the company continues to adapt and focus on sustaining its position as a technology giant in the ever-evolving industry landscape.