Tata Consultancy Services Ltd (TCS) on Wednesday said salary hikes for its employees will be rolled out from 1 October. “Since the performance was driven by TCS employees, we are glad to announce that we will resume our salary hike cycles with effect from 1st October, in line with previous years," said Rajesh Gopinathan, chief executive officer and managing director of TCS.
The announcement came after TCS reported a 3% increase in September quarter revenue and a 4.9% rise in profit from a year earlier.
TCS added 9,864 employees in the quarter, including 7,000 freshers, taking its total headcount to 453,540.
“We want to thank all TCSers for the incredible resilience they have shown during these trying times. We are happy to announce that we will be rolling out salary increases, effective October 1st. We started onboarding freshers, and increased our recruitment globally in Q2, in anticipation of the growth trajectory we see ahead," said Milind Lakkad, global head of human resources at TCS.
Investments in people, progressive HR policies and an empowering culture have helped TCS retain talent, the company said, adding that its IT services attrition rate was at 8.9% in the September quarter, an all-time low.
TCS said it is continuing investments in organic talent development, with a focus on upskilling and innovative training methods. TCS employees logged in 10.2 million learning hours in the second quarter, a 29% increase from the preceding three months, it said.
The salary hikes are likely to impact margins in the six months to 31 March. The management said that new changes in H-1B regulations are yet to be evaluated, but it is confident that the company will be able to withstand the impact.
ARTICLE INFORMATION on Mint
Article Written by Swaraj Singh Dhanjal
Article Link: https://www.livemint.com/companies/news/tata-consultancy-says-pay-hikes-on-the-way-11602115972840.html
Article Edited and Republished for CTen by Krishna K