Human management

What Tcs management said about wage increases and return-to-work plans for employees

While announcing an earnings update for the fourth quarter ended March 2022, India’s leading IT company Tata Consultancy Services (TCS) unveiled its plans to call employees back to the office after working remotely for more than two years in due to the coronavirus pandemic.

At a press conference, TCS CEO and Managing Director Rajesh Gopinathan told reporters that the firm’s senior partners would start returning to the office starting three days a week from April, and would gradually increase the number of returning employees, with the company expecting most of its staff to work from the office by the middle of the year.

Regarding salary increases, he said the IT company granted a 6-8% raise in FY22 and would consider similar increases with an upward bias in FY23. , as quoted by the news agency. PTI.

“We are starting with our senior associates, the top 50,000 employees, who will start coming into the office, starting three days a week starting this month. And then we will continually increase the coverage of associates who will start to come back. So at some point in the middle of the year, we should be somewhere in the pit on the way to 80:20,” Gopinathan said.

He seemed confident about the 25 by 25 model the company had in place, but thinks it needs to be implemented in a structured way because currently the IT company operates almost like a 95:5 model.

“We need to get back to a more normal pattern of around 80:20, before we start migrating to the 25 by 25 pattern and hopefully if the trajectory we’re seeing now continues, we’ll start to accelerate that return to the pattern. . 80/20 model,” added the IT giant’s CEO.

In the fourth quarter, TCS added 35,209 employees on a net basis, the highest net addition ever in a quarter. Membership stood at 592,195, a net addition of 103,546 during the year, another all-time high. Meanwhile, TCS IT Services (LTM) churn was 17.4% for the said quarter. “IT department attrition continued to climb. However, the gradual attrition has moderated.”

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