Tata Consultancy Services (TCS), one of India's biggest IT companies, is giving its employees a salary raise this year. The increase will be between 4% and 8%. This means that for every ₹100 an employee earns, they will now get an extra ₹4 to ₹8. The new salaries will start in April.
Why the Hike Isn't That Grand
While a raise is always good news, this year's hike isn't as big as it used to be. During the COVID-19 pandemic, when business was booming, TCS gave much larger salary increases. Back then, some employees got as much as a 10% raise or even more.
So, why is the hike smaller this year? TCS says it's because the business environment is tough right now. This means that it's harder for the company to make money, so it can't afford to give everyone a huge raise.
Return to Office Affecting the Hike
TCS also said that how well employees followed the company's "return-to-office" rule affected their salary increase. This rule required employees to come back to work in the office after working from home during the pandemic. Employees who came to the office regularly were more likely to get a better raise.
Not Everyone Is Happy
Some TCS employees aren't too thrilled with the size of the raise. One employee who has worked at TCS for eight years said that the raises have been small for the last few years. They also mentioned that the raises started getting smaller after the company's former boss, N Chandrasekaran, left.
TCS's Performance
Even though the salary hikes are smaller, TCS is still doing well as a company. In the last three months of 2024, TCS made a profit of over ₹12,380 crore. That's a lot of money!
The company's sales also went up by 5.59% to ₹63,973 crore. TCS is investing in new technologies like AI (artificial intelligence) to keep growing.
Changes in Appraisal System
In 2019, TCS also changed how it measures employee performance. The company decided to stop using the old "bell curve" model. The bell curve model is a system where employees are ranked on a curve, with some employees being ranked as high performers, some as average, and some as low performers. TCS wants to give employees feedback more regularly instead of once or twice a year.
What's Next?
TCS is still a strong company, but it's facing some challenges in the current business environment. The company is trying to balance rewarding its employees with making sure it can continue to grow and be successful. While the salary hikes may not be as grand as some employees had hoped, they are still a sign that TCS values its employees and is committed to sharing its success with them.
With inputs from agencies
Image Source: Multiple agencies
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