Onboarding Delays: TCS quarter-on-quarter hiring dropped by 90% in first three months of FY2024 – Times of India
India’s largest IT services company Tata Consultancy Services saw a massive drop in hiring in the first quarter of the fiscal year 2024. The company added a net 523 employees during the first quarter of FY24, as against 821 in the previous quarter. The company had added over 20,000 employees during the same quarter last year. This means a plunge of over 90%. The numbers reflect a significant slowdown in hiring at the IT major.
Headcount at the country’s largest software exporter stood at 615,318 at end-June, while attrition moderated to 17.8% in the first quarter compared to 20.1% in the preceding quarter.
Chief human resources officer Milind Lakkad is optimistic about a better showing in the months ahead though. “Expect industry-leading retention numbers to be back in H2,” he said.
TCS has reported a forecast-beating 17% year-on-year rise in first-quarter net profit to Rs 11,074 crore. Consolidated revenue increased nearly 13% YoY to Rs 59,381 crore. The board has approved an interim dividend payout of Rs 9 per share.
Rolled out 12-15% hikes
TCS has rolled out 12% to 15% hikes for exceptional performers, 8% to 10% for high performers and 6%, on average, across the company. Lakkad said that 70% of the employees will get a 100% variable payout for the June quarter. The company’s attrition rate dropped to 17.8% in the June quarter from 20.1% in the March quarter of the last fiscal. Lakkad said that the company will get to a pre-Covid level retention rate by the second half of the current financial year.
When asked about the hiring outlook, Lakkad said TCS will be hiring 40,000 freshers this year, but gave no clarity on how this will be split across the three quarters.
About 55% of the company’s workforce has started reporting from the office thrice a week.
Headcount at the country’s largest software exporter stood at 615,318 at end-June, while attrition moderated to 17.8% in the first quarter compared to 20.1% in the preceding quarter.
Chief human resources officer Milind Lakkad is optimistic about a better showing in the months ahead though. “Expect industry-leading retention numbers to be back in H2,” he said.
TCS has reported a forecast-beating 17% year-on-year rise in first-quarter net profit to Rs 11,074 crore. Consolidated revenue increased nearly 13% YoY to Rs 59,381 crore. The board has approved an interim dividend payout of Rs 9 per share.
Rolled out 12-15% hikes
TCS has rolled out 12% to 15% hikes for exceptional performers, 8% to 10% for high performers and 6%, on average, across the company. Lakkad said that 70% of the employees will get a 100% variable payout for the June quarter. The company’s attrition rate dropped to 17.8% in the June quarter from 20.1% in the March quarter of the last fiscal. Lakkad said that the company will get to a pre-Covid level retention rate by the second half of the current financial year.
When asked about the hiring outlook, Lakkad said TCS will be hiring 40,000 freshers this year, but gave no clarity on how this will be split across the three quarters.
About 55% of the company’s workforce has started reporting from the office thrice a week.
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