“We strongly believe they need to come to work so the new workforce gets integrated with the larger workforce. That is the only way they will learn, understand and internalise TCS values and the TCS way. Having said that, we will continue to assess the work models and evolve depending on what works best for our customers and employees,” said chief human resources officer Milind Lakkad.
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Reduced hiring numbers reflect the investment in fresh talent made over the past two-three years paying off, Lakkad said, adding the company has recalibrated hiring numbers as attrition has reduced.
TCS’s headcount saw a net fall of 6,393 employees in Q2 of FY24, taking the overall headcount to 608,985. Further, the headcount fell by 7,186 compared to the year-ago period. This comes as India’s largest software exporter had added around 523 employees sequentially in Q1. Voluntary attrition for the quarter stood at 14.9% compared with 17.8% last quarter and the company said further improvements in the metric would be seen going forward.
“We should not relate the headcount degrowth with business demand or the business situation,” Lakkad said, as this is happening across quarters. “People coming in for the last 18 months are getting leveraged now in the past year.”
Hiring is continuing in large numbers, he said, both from campus and elsewhere. Trainee hiring continues and all offers will be honoured. “There may be delays, a quarter here and there, but they will come on board,” the CHRO said.
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Regarding variable pay, the company will pay 100% of variable pay for 70% of the workforce, Lakkad said. The remaining will get paid based on the business unit performance, he added.TCS had told employees informally to return to office five days a week starting October 1.
Companies like Wipro, Capgemini and LTIMindtree are also among the leading IT companies in India that have begun nudging employees to be in office on all or at least 50% of the working days in a week, ET had reported on October 3.
These moves may signal the end of the work-from-home era in the country’s tech sector, which saw IT companies take to hybrid mode, with employees coming into office on a need basis for almost three years since the Covid-19 pandemic.
The messages were sent across through verbal and informal communication channels, and not as firm-wide mandates.