News: No pay hikes at TCS but jobs are safe

Compensation & Benefits

No pay hikes at TCS but jobs are safe

Tata Consultancy Services has announced that there will be no retrenchment amid COVID-19, in fact, the IT firm will honor all 40,000 campus offers made this year.
No pay hikes at TCS but jobs are safe

TCS CEO and MD Rajesh Gopinathan shared how the pandemic completely reversed the positive momentum that the firm started seeing in some of its biggest verticals in the first half of the quarter. As the company announced its financial earnings for Q4 of FY20 and for the financial year 2019-2020, it confirmed that no retrenchments are to follow. 

Further, TCS will also be honouring all campus offers made this year. Milind Lakkad, EVP and Global Head of Human Resources at TCS, shared that there were 40,000 campus offers made this year. 

“Most academic institutes will close their term only by mid-June and July and we will start on-boarding trainees from that point till the end of the year. But we will honour all the offers despite whatever situation we are in,” said Lakkad. 

The company also revealed that promotions will continue, but the quantum will depend on business performance and will be evaluated every quarter.

On the contrary, another IT major Capgemini announced increment for 84,000 employees even amid this stressful phase for the sector. Ashwin Yardi, Capgemini CEO had shared that while there are some cost-containment measures in place, there’s no discussion within the leadership of Capgemini India for a pay cut and all employees at A and B grades (84,000 employees) have got their hikes and others will get increments in line with firm’s plan. 

It is not only Capgemini or TCS, in an effort to enable their employees to sail through the tough times brought about by COVID-19, companies across the globe have come up with a slew of measures to keep cost in check and employees on the payroll. Shorter work weeks and time banks, seeking government support/ funds and creating new job roles are some of the many ways employers are keeping cost in check amid lockdown. In this story read more about some global practices on cost-cutting that are helping organizations reduce costs and retain talent: Keeping cost in check and employees on the payroll amid COVID-19

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Topics: Compensation & Benefits, #COVID-19

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