IT giant TCS kicks off appraisal cycle during annual compensation review

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Lower attrition and lower number of new hires being hired at India’s largest IT services firms does not mean higher increments. TCS has started the in-company promotion cycle and said that exceptional performers are given a 12-15 percent increase in annual compensation review.

For TCS, the decrease came in the first quarter of fiscal year ’24 of 17.8 percent, which is a sharp decrease from 20.1 percent in the fourth quarter of fiscal year ’23.

The company said the average salary increases ranged between 6 and 8 percent. However, high performers received raises in the 8-10 percent category, and exceptional performers received raises in the 12-15 percent range.

For the first quarter, the company will offer variable pay of 100 percent to 70 percent of employees, and 30 percent will be performance-based.

“We remain focused on developing, retaining and rewarding the best talent in the industry, and enhancing their effectiveness by reinstating them to enhance our culture,” said Milind Lakkad, CHRO, TCS.

He also added that the company’s level of retention will return to the pre-pandemic level by the second half of the current fiscal year. Traditionally the depletion of TCS is 11-13%.

However, softness in business was evident on the companies’ employment targets. For the first quarter, the company hired 532 employees, down from the 820 in the fourth quarter of fiscal ’23.

In addition, the company has also confirmed that in some cases it has deferred lateral hires. “There were some delays in the deals as a result of the postponement of the accession process. But we will honor every offer we made,” Laqad told a media briefing.

Back in the office, the company said the pace is picking up, with 55% of the workforce already working three times a week.

The company did not comment in detail on the ongoing investigation into Jobs for bribery. “All that needs to be said has been mentioned. As a company we continue to look at our processes and make the required changes,” said N Ganapathy Subramaniam, Chief Operating Officer and CEO, TCS when asked about some of the weaknesses in the system.