TCS plans a 12-15% salary hike for top performers to stem attrition, may hike campus salaries, and offer skill incentives to recruits - Business News: Latest Share Market , Economy & Finance News | Trendmergers

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TCS plans a 12-15% salary hike for top performers to stem attrition, may hike campus salaries, and offer skill incentives to recruits

 TCS plans a 12-15% salary hike for top performers to stem attrition, may hike campus salaries, and offer skill incentives to recruits

TCS plans a 12-15% salary hike for top performers to stem attrition


Tata Consultancy Services (TCS), India's largest IT services company, is planning to offer a salary hike of 12-15% for its top performers to retain talent and stem the increasing attrition rate. The company is also considering increasing campus salaries and offering skill incentives to recruits.


Background


The Indian IT sector has been facing a talent shortage for quite some time, and the COVID-19 pandemic has only made the situation worse. Many IT companies have been struggling to retain talent, and some have even resorted to offering retention bonuses to employees.


TCS has been facing a similar challenge, with its attrition rate rising to 8.6% in the quarter that ended in December 2020. The company also offered a one-time special bonus to employees in December 2020 to show appreciation for their efforts during the pandemic.


Details of the Salary Hike Plan


TCS is planning to offer a salary hike of 12-15% to its top performers in India, starting from April 2021. The company has over 4.5 lakh employees in India, and the salary hike will benefit a significant number of them.


The salary hike is expected to be higher than the average hike of 6-8% that is usually offered by IT companies. The company is also considering increasing campus salaries to attract top talent and offering skill incentives to recruits.


Impact of the Salary Hike Plan


The salary hike plan is expected to help TCS retain its top performers and stem the attrition rate. It will also make TCS a more attractive employer in the competitive Indian IT job market.


The salary hike plan is also likely to have a ripple effect on the IT industry as a whole, with other IT companies possibly following suit and offering higher salary hikes to their employees.


Conclusion


TCS's decision to offer a salary hike of 12-15% to its top performers is a positive development for the company and the IT industry as a whole. The move will help TCS retain its top talent and make it a more attractive employer in the Indian IT job market. It remains to be seen whether other IT companies will follow suit and offer higher salary hikes to their employees.


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