TCS: No salary hike but will honour all 40,000 job offers made to freshers

 Largest Indian software exporter TCS on Thursday said it will not retrench any of its nearly 4.5 lakh employees but has decided not to give any salary hikes this year

Tata Consultancy Services (TCS), India's largest software services company on Thursday said that it will honour all the 40,000 job offers made to freshers this year, adding, that it does not see layoffs at the moment.

"Every offer that we have made will be honoured. We do not see any retrenchments," TCS MD and CEO Rajesh Gopinathan told reporters over a call. Its head of human resources Milind Lakkad elaborated that it has given out 40,000 offers to freshers and all of them will be onboarded as the year proceeds.

However, the company said it has decided not to give any salary hikes this year amid the pandemic to its 4.5 lakh employees. TCS reported a net profit of Rs 8,093 crore in the January-March quarter. 

Typically, colleges and universities will be on till June, and then the students will start joining, he added. However, in what may come as a dampener to employees, it has decided to put salary hikes on hold, Lakkad said.

"We have decided not to give any salary hikes this time," he stated. Gopinathan said the company has an overall attrition of 12.1%, which is one of the best in the industry and affirmed commitment to look after the employees and appreciated their commitment to the company in its hour of crisis.

The company's chief operating officer N Ganapathy Subramaniam said there are 3.55 lakh employees working in India at present, and 90% of them are now connected with secure workplaces to serve clients' needs. He also added that in the initial trends, the company has observed that productivity has increased in the new model of its associates working from home.

The COO said there are many learnings for the company on aspects, including on why to have all associates working from a single office, and others, which will be taken on board in the future as well.