TCS working towards reducing pay disparity in employees, plans to double salaries

The tech industry has been going through a rough time recently as many companies announced large-scale layoffs in order to cut down costs and survive in the present economic conditions. However, Tata Consultancy Services (TCS) remains an exception as amidst the challenging job market, the company not only continues to hire employees, but is also working towards reducing the pay disparity in its employees. It is quite common for pay disparity to exist among junior and senior employees in a company. However, TCS seeks to end this problem.

TCS’ chief human resources officer, Milind Lakkad, revealed in an interview with Moneycontrol that the company is looking forward to providing a chance to their employees to upskill and double their salaries.

TCS CHRO on reducing pay disparity

TCS has over 6 lakh employees globally and the company’s strategy is to invest in their in-house talent and give them a chance to shine rather than spending in offering massive increments to freshers.

Milind Lakkad, talking about the company’s plans to reduce pay disparity within employees, told Moneycontrol, “Those two years of instant gratification were definitely there. While we lost people because they were getting X percent more somewhere, we also hired people, not with that kind of increase but there was some increase definitely. We also ensured that internally people get the opportunity to upgrade their compensation through various initiatives, to reduce disparity internally.”

The report further states that TCS is planning to enroll more employees, from different experience levels, in its existing programmes in order to offer them a chance to make double of what they make currently. However, only around 10 percent people per year are able to clear these high-level programmes in their first attempt.

TCS’ talent development programme, Elevate, is often in the news. The Moneycontrol report suggests that around 400,000 employees have registered for the programme and their experience ranges from 0-12 years. The people who manage to clear the high bar assessment get their salaries doubled immediately.

Lakkad also told the publication that according to him, employees with 4-12 years of experience could become specialists in areas such as technology, cybersecurity, IoT, analytics, and artificial intelligence, once the programme ends. They can then choose the industry they want to focus on.

However, he added that the pay hike for the employees in the middle category is not immediate. “So basically they get a part of the kicker and will get the remaining kicker when they get deployed to that role,” he said.

Hiring at TCS

A couple of days back, it was reported that for the financial year 2024, TCS rolled out as many as 44,000 job offers to freshers. Unlike other tech companies that are revoking offers of freshers or are delaying their onboarding in these times, TCS chose to honour all offers. Not only that, Lakkad also promised that the existing employees will be getting 100 percent of their variable along with the standard increment that is 12-15 percent. as is standard

“We are honouring all job offers, and have added 22,600 employees on a net basis in FY 23. During the year, we onboarded over 44K freshers and our highest-ever number of experienced professionals,” Lakkad had said in a statement earlier this month.

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