TCS Plans to Double Employee Salaries and reduce Pay-gap
Tata Consultancy Services (TCS), a global IT services company, is bucking the trend of layoffs and pay cuts in the tech industry. While many companies have announced cost-cutting measures, TCS continues to hire employees and reduce pay disparities among its staff.
In an interview with Moneycontrol, TCS’ chief human resources officer, Milind Lakkad, said the company is investing in its in-house talent and providing employees with the opportunity to upskill and double their salaries. TCS has a global workforce of over 600,000 employees, and its strategy is to give employees the chance to shine rather than offering massive increments to freshers.
Lakkad acknowledged that pay disparities often exist between junior and senior employees within a company, but TCS seeks to end this problem by reducing the gap internally. The company plans to enroll more employees, from different experience levels, in its existing programs to offer them the chance to double their current salaries. However, only around 10 percent of people per year are able to clear these high-level programs in their first attempt.
TCS also announced that it rolled out 44,000 job offers to freshers for the financial year 2024, unlike other tech companies that are revoking offers or delaying onboarding due to the economic conditions. Lakkad made a commitment that the current staff members would be given their full variable remuneration in addition to the regular increment ranging from 12 to 15 percent.
Earlier this month, Lakkad stated that they have honored all job offers and have recruited a net total of 22,600 employees in FY 23. Additionally, they have onboarded more than 44,000 freshers and the largest number of experienced professionals ever during the year.
While TCS has faced challenges in the past due to job losses, the company’s current focus is on investing in its employees and providing them with opportunities for growth and development. With its unique strategy and commitment to its workforce, TCS is setting an example for other companies in the tech industry to follow.