India’s largest IT major, Tata Consultancy Services (TCS) has reported an 8.6% attrition in the past year while announcing its first-quarter results of the financial year 2021-22.
According to the TCS report, it was 7.2% in the previous fourth quarter of the financial year 2020-2021. Which has increased to 8.6% in three months.
There is nothing like that TCS management did something wrong, it is because of the tremendous amount of demand for those digital talents and low supply especially in the 3–5 years of experience bracket.
If we look at data and compare it with peer companies, TCS still has the lowest attrition in the Industry. According to recent quarterly results, Infosys was at 13.9%, Wipro at 15.5%, HCL Technology at 11.8%, Accenture at 17% attrition, and Cognizant at 31%. Yet, TCS has the lowest Attrition among its peers.
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Responding on why Attrition Rate is lowest at TCS, an analyst who has worked with the company for 7 years said…I will list down the pros for which the attrition rate is low-
- TCS promotes a healthy work environment. You can learn new things, collaborate. If you dont like the work assigned to you you can look for new opportunities. Though changing projects and getting relase is an art 😂, still you can manage it.
- Job security!! Unless you do any crime, sexual harrasment, security breach. I know an employee who even kept his job punching twice in separate incidents inside office 😁.
- You can stay in bench for long without fearing of job loss. You can do a fresh start in new technologies after getting a suitable project. Lots of people take bench willingly before any exam preparation.
- Flexible working hours, currently SBWS model allow you to work from any where in any projects across Globe.
- Great for people who want to settle and have family. Work life balance is best in TCS. If you are smart you can manage a stress free life with doing little work in office.
- Fixed salary. You will always get the fixed component of the salary on the last working day of the month.
- 90 days notice period. You will get less interview for long notice period. Also there is a buy back policy for the number of days not served. But you will loose 4–5 kg weights and hairs after a successful notice buyback.
Currently, TCS has a total headcount of 509,058. The company has crossed the 5.0 lakh milestone in the total workforce. TCS added over 40,000 employees in the first quarter of the 2021 fiscal year and 19,388 between January and March this year.
Employee Attrition is widely understood to be one of the major problems affecting organizations today especially in IT industries. Losing employees has many direct and indirect impacts on a company.
However, by and large, all the big IT companies expect the attrition rate to inch up in the coming quarters that is leading to a talent war.
According to experts, attrition is an important HR metric that can tell you a lot about the direction of your business and possible problems that you may need to address.
A good, average turnover/attrition rate is around 10 per cent.
