TCS completes its fresher hiring target three months ahead of schedule but it’s not done yet
- The company has earlier intended to hire 34,000 employees by March 2022 but it has completed that target by December itself.
- TCS has reported an attrition rate of 15.3%, which is lowest when compared to peers Wipro and Infosys.
- To retain top talent, TCS has ramped up promotions. After 110,000 promotions till December 2021, it plans another 40,000 before March.
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AdvertisementIndia’s largest software exporter, Tata Consultancy Services (TCS), whose employee count recently completed a milestone of 2,00,000, continues to be aggressive in hiring amidst a crazy battle for technology talent .
TCS had earlier said that it would hire an additional 34,000 freshers by March but it has already met that target by December. The company will continue to hire between January to March quarter as well, however, no particular target has been set.
“Our hiring intensity will continue but we don’t have any particular number for the coming quarter,” Milind Lakkad, Chief Human Resources Officer at TCS, highlighted during the media briefing.
|Quarter||No. of freshers hired|
|April to September||43,000|
|October to December||34,000|
TCS has reported an attrition rate of 15.3%, which is lowest when compared to peers Wipro (22.7%) and Infosys (25%), in the quarter ending December 2021. However, it hired a net of 28,000 new employees in the last three months, the highest ever in the company’s history.
Attrition is used to describe the rate at which employees are leaving the company. To battle the fast pace at which employees are moving on for better opportunities, TCS has increased the pace of promotions as well. As part of its earnings release, the management said that it had given 110,000 promotions this financial year till December, and another 40,000 are on the cards in the remaining three months.
The higher salaries, incentives and cost of hiring and retaining top talent has taken a toll on the profit margins of TCS, just as in the case of Infosys and Wipro. Operating margin fell to 25% compared to 26.6% three months ago. The company believes that the attrition pressure may be bottoming out.
The attrition at Infosys is worse than that at Wipro, Salil Parekh has increased hiring plan by 10,000
Wipro increases hiring plan to 30,000 as attrition hits a new high
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