By Tata Consultancy Services (TCS), India’s leading IT company, addressed concerns regarding employee transfers, emphasizing that mobility is a fundamental aspect of their employment contracts. This statement comes amidst allegations of ‘forced’ transfers and a formal complaint filed against the company by the IT workers union Nascent Information Technology Employees Senate (NITES) with the Ministry of Labour.
Embracing Mobility for Career Advancement
Milind Lakkad, TCS’s Chief HR Officer, stressed the importance of mobility in employees’ careers, highlighting its role in securing promising projects and fostering professional growth. He affirmed that mobility clauses are standard in employee contracts and underscored the benefits of diverse project experiences in career development.
Response to Allegations
While Lakkad refrained from commenting on allegations of transferring employees without project assignments, he clarified that relocations are primarily driven by business requirements in specific locations where opportunities exist.
Variable Pay Distribution
TCS announced that 70% of its employees would receive 100% of their variable pay for the quarter, with the remaining contingent upon business unit performance.
Return to Office
The company reported progress in its plan to transition employees back to office settings, noting that 65% of its workforce had resumed office attendance, particularly noticeable before the holiday season. Lakkad highlighted the positive energy among employees, citing the successful participation in the recent Family Day event held across ten locations, which attracted 180,000 participants.
Attrition Trends
TCS experienced a reduction in headcount by 5,680 employees during the quarter, totaling 608,985 as of December 31, 2023. Notably, the company witnessed a significant decline in attrition rates, dropping to 13.3% in Q3 from 14.9% in the previous quarter. Lakkad expressed confidence that attrition levels have now reached a comfortable range, attributing the decline to strategic hiring initiatives and plans to leverage existing talent investments.
Future Hiring Plans
TCS remains committed to campus recruitment efforts for FY25, aiming to onboard 40,000 freshers by the end of FY24. Lakkad affirmed the company’s dedication to nurturing talent organically and highlighted the enthusiasm among fresh graduates to join TCS, signaling a positive outlook for future talent acquisition endeavors.
