TCS Employees Salary Hike:Â The country’s largest IT services company Tata Consultancy Services (TCS) has given a big gift to its employees. The company has increased the salary of most employees by 4.5% to 7%. Late on Monday night, the company started sending increment letters to employees and this salary hike will be implemented from September.
TCS employees are in trouble
This increase has been made at a time when a few months ago TCS had laid off about 12,000 employees. At that time, it had a big impact on both the IT sector and the stock market and the company’s shares saw a huge decline.
According to reports, the salary hike has mainly benefited the lower to middle level employees. At the same time, the employees who performed well have been given more than 10% increment. Earlier, in the April-June quarter results, the company had recorded a slight increase in the attrition rate of employees, which reached 13.8%. Now this step of salary hike is being considered important in the direction of keeping the employees together and boosting their morale.
Staff enthusiasm due to increment
Investors may be a little cautious due to the increased cost of the company required due to the salary increment of TCS employees and there may be a slight pressure on the stock. But by retaining the employees, the company’s growth and client retention will be strengthened, which may increase the confidence of investors.
It is worth noting that TCS had stopped salary increment for two months in view of the market conditions and cost pressure. In July, the company’s Executive Vice President and Human Resources Officer Milind Lakkad had given a statement that the company has not yet taken any decision on the salary hike of the employees.
This had increased uncertainty among the employees and it was believed that due to layoffs and slow demand in the IT sector, salary hikes could be delayed. But now the company has made it clear by implementing salary hike from September that it wants to take its employees along.
