TCS to give 70% employees full variable pay to its employees for Q2 FY23
Chief Human Resources Officer Milind Lakkad had announced that Tata Consultancy Services will be paying out 100 percent of the variable pay to 70 percent of its employees for the second quarter of FY23. "The remaining 30 percent of employees will be paid [the variable pay] based on the business unit performance,” Lakkad said.
Follow70% of employees at Tata Consulting Services, the largest IT business in India, will receive 100% variable pay in the second quarter of FY23. This was disclosed by the company's chief human resources officer, Milind Lakkad, during an analyst conference call on Monday, October 10, following the release of second-quarter results. According to the performance of the business unit, "the remaining 30% of employees will be paid [the variable pay]," Lakkad continued.
TCS stated that it paid all of its workers' variable pay for Q1 promptly and on schedule. The company stated in an August statement that the variable pay is typically paid either in the first or second month.
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Wipro and Infosys, competitors of TCS, both reduced variable pay for the first quarter. Wipro withheld variable payments from mid- and senior-level employees while giving junior employees 70% of the variable compensation. After employing 20,000 freshman during the quarter of July through September, TCS added just over 35,000 new workers over the first half of the fiscal year. TCS reported that it now expects to hire 10-12,000 additional people for FY23 despite having earlier announced a goal of 40,000 fresher hires. According to Lakkad, the corporation will decide on its new objectives for employing freshmen after the third quarter.
He asserted that TCS has honoured each and every job offer given by the company. On an LTM basis, the company's attrition rate for the quarter increased slightly to 21.5 per cent from 19.7 per cent sequentially.
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He said 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 concluded.
