TCS, HCL, Wipro Attrition: Indian IT companies are grappling with high attrition rates. In order to retain the talent, the firms are taking various steps such as giving mid-term hikes and offering promotions. For instance, IT major Wipro, which released its financial results for the June 2022 quarter on Wednesday, has announced to offer promotions to its employees every quarter starting July this year and also salary hikes from next month.
Apart from this, IT companies are also offering retention bonus, out-of-cycle wage revisions and salary hikes, which has been impacting their margins.
During the June 2022 quarter, India’s largest IT services company TCS reported an attrition rate of 19.7 per cent on a last twelve-month basis. It was the highest attrition rate registered by the company in the last six quarters. The attrition rate came in at 17.4 per cent in the quarter-ending March 2022.
Wipro’s attrition rate stood high at 23.3 per cent in Q1FY23, which was meanwhile lower on a quarter on quarter basis. Wipro had posted 23.8 per cent attrition rate in Q4FY22, which is the previous quarter.
HCL also posted a high attrition rate of 23.8 per cent, compared to the quarter ended March 2022, where the same was 21.9 per cent. On a year on year basis, HCL Tech attrition level has risen by 12 per cent from 11.8 per cent in Q1FY22 to 23.8 per cent in Q1FY23.
To reduce the attrition rate and retain talent, Wipro CEO and MD Thierry Delaporte on Wednesday said during the post-Q1 results press conference: “Our talent investments I believe are paying off. To recall, we announced moving to a quarterly promotion cycle which is very new, from when we were on the yearly cycle. The quarterly promotions have been effective this month (July 2022) and also salary increases for those eligible in September 2022.”
He added that the company’s attrition has continued to moderate from the previous three consecutive quarters.
Apart from monetary measures, TCS is also offering workplace flexibility to retain talent. It has said the hybrid model of working, coupled with TCS’ existing location-independent agile methodology, will help talent retain in value realisations for enterprises.
It has also introduced 25×25 policy, under which it will require not more than 25 per cent of the company’s associates to work from an office at any given point in time, and they need not spend more than 25 per cent of their time in the office. Apart from this, it has also set up occasional operating zones and hot desks for workplace flexibility.
TCS has crossed the 6-lakh employees milestone with a total headcount of 6,06,331 at the end of the first quarter of the financial year 2023. It added a total of 14,136 new employees during the quarter. HCL added a total of 6.089 freshers during the quarter ended June 2022, with a total headcount of 2,10,966 employees at the global level.
Wipro added a net headcount of 15,446 employees in the quarter ended June 30 as compared to the preceding quarter, higher than its peers TCS and HCL Tech.
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