New Delhi: Tata Consultancy Services (TCS) has unveiled its latest variable pay structure targeted at junior employees, specifically those holding at least four years of experience within the C2 grade. The announcement, conveyed by Milind Lakkad, the company's Chief Human Resources Officer, came through an official email communication.

Under the new structure, junior employees falling under the C2 grade will now receive a 100 percent variable pay, indicating a departure from traditional fixed compensation models. Notably, Lakkad also mentioned that variable pay for employees positioned above the C2 grade will be contingent upon the performance of their respective business units, underscoring the company's commitment to linking rewards with performance outcomes.

This decision aligns with TCS's recent trend of allocating 100 percent variable pay to junior employees, reflecting a strategic shift in compensation strategy. Lakkad further emphasized the significance of nurturing a conducive work environment conducive to employee growth and highlighted the salary increments slated for TCS employees. These increments range from 4.5 percent to 7 percent, with exceptional performers poised to receive double-digit raises, indicative of TCS's commitment to recognizing and rewarding excellence.

In addition to outlining the compensation framework, Lakkad provided insights into TCS's hiring plans during an investor call, revealing aspirations to onboard 40,000 freshers, though subject to market demand fluctuations. Impressively, TCS employees have collectively completed 51 million learning hours year-to-date, acquiring 5 million competencies, signaling a strong commitment to continuous learning and development within the organization.

Moreover, TCS reported a notable decrease in its attrition rate over the last twelve months, standing at 12.5 percent and marking an 80 basis points sequential decrease. This figure falls comfortably within TCS's targeted range of 11 percent to 13 percent, underscoring the company's efforts to enhance employee retention and satisfaction.

Looking ahead, TCS plans to implement double-digit salary hikes for top performers commencing in April, with increments ranging from 4.5 percent to 7 percent. The company remains steadfast in its pursuit of training efficiency and sustains its recruitment drive through national qualifier tests, with the overarching goal of fulfilling its recruitment target of 40,000 freshers for the fiscal year 2023-24.

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