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| Edited By: DNA Web Team |Source: DNA Web Desk |Updated: Oct 11, 2022, 11:16 AM IST
Tata Consulting services, India’s largest IT company to give 100% variable pay to 70 percent of its employees for the second quarter of FY23.
Milind Lakkad, Chief Human Resources Officer had announced this on the company’s call with analysts on Monday, October 10 after it declared its results for the second quarter.
“The remaining 30 percent of employees will be paid [the variable pay] based on the business unit performance,” Lakkad added.
For Q1, TCS claimed that it paid out all of its employees' variable wages on time and without delay. The company stated in an August statement that the variable pay is typically paid either in the first or second month.
Wipro and Infosys, competitors of TCS, both reduced variable pay for the first quarter. Wipro paid out 70% of the variable pay to junior employees while withholding variable payouts to mid and senior level employees. On the other hand, Infosys had reduced the average variable payout to 70%.
TCS brought on a little over 35,000 new employees during the first half of the fiscal year after hiring 20,000 freshmen during the quarter of July through September. Despite having previously stated a 40,000 fresher hiring goal for FY23, TCS said it now anticipates hiring 10-12,000 more. After the third quarter, the company will decide on its new goals for hiring freshmen, according to Lakkad.
He claimed that TCS had honoured all of the employment offers made by the business.
The firm's attrition during the quarter inched up to 21.5 percent on an LTM basis, up from 19.7 percent sequentially.
“The technology job market which had overheated in the last few quarters has begun to cool off, and compensation expectations of new hires are also becoming more realistic. With supply catching up across the industry, the pressure to poach experienced talent is easing so we should start seeing the churn settling in the coming months,” Lakkad said.
