TCS is trying to close the pay gap between its own employees and is giving them the chance to double their pay. Here are the five main points of the story.
Tata Consultancy Services (TCS) is taking steps to fix pay differences among its employees. Milind Lakkad, TCS’s chief human resources officer, said in an interview that the company is excited to give their employees a chance to learn new skills and double their salaries.
Tata Consultancy Services (TCS) stands out because it hires new people and addresses pay disparity, which is a common problem in the tech industry where many companies are laying off a lot of people to stay alive.
In a previous interview with Moneycontrol, TCS’s Chief Human Resources Officer (CHRO), Milind Lakkad, talked about the company’s plans to narrow the gap between the highest and lowest salaries over the next two years.
In five points, here is the whole story:
TCS has over 6 lakh employees around the world and wants to invest in them and give them a chance to grow in their careers instead of hiring new people at huge pay increases. Some of the company’s own programmes give employees the chance to learn new skills. In the interview, Lakkad said that TCS plans to add more employees with different levels of experience to these programmes.
TCS’s upskilling programmes give employees the chance to earn twice as much if they pass the tests. One such talent development programme is Elevate. About 400 thousand employees have signed up for the programme. Their years of experience range from 0 to 12. People who pass the high-stakes test have their salaries doubled right away. But only about 10% of the people who take these high-stakes tests usually pass and get their pay doubled.
Lakkad also said that the company is thinking about raising the pay of new hires and giving all employees, especially those at lower levels, 100% quarterly variable pay. “Given that, is there anything else we can do (to reduce pay inequality)? All of these programmes are better than changing the salaries of the lowest-paid people all at once. Even so, would we still think about changing the lowest salaries? Yes, that’s the answer. But we don’t know when that will happen yet; it’s something we’re thinking about,” he told Moneycontrol.
The CHRO also said that even though the company has a high turnover rate, about 125,000 of its current employees have been there for more than a decade. TCS asks international business schools to offer experiential learning for growth and transformational leadership training to this group of employees with more than 10–20 years of experience. This is to make sure that they always have the most up-to-date skills. Instead of hiring people from outside, the company prefers to train and promote people from these groups into senior roles. Lakkad also said that TCS is committed to making sure that their senior employees learn and understand the latest technologies, such as cloud, AI, cybersecurity, and more, and are placed in different jobs that match their new skills.
A few days ago, it was reported that TCS offered as many as 44,000 jobs to new graduates for the financial year 2024. In these tough economic times, some tech companies are rescinding job offers to new graduates or delaying their start dates. TCS, on the other hand, decided to honour all job offers. Not only that, but Lakkad also said that the current employees would get 100% of their variable pay and the standard increase, which is usually between 12 and 15%. “We’re taking all job offers, and in FY 23, we’ve added 22,600 net new employees. During the year, we hired more than 44,000 new employees and the most experienced professionals we’ve ever had “In a statement from earlier this month, Lakkad said.