Promotions, internal opportunities.. How TCS maintains 'lowest' attrition rate in industry
India's top IT company Tata Consultancy Services (TCS) added 28,238 employees on a net basis, taking the total number of employees to 556,986 as on December 2021. The company hired 43,000 freshers in H1 (first half), whereas it onboarded 34,000 fresh graduates in Q3, higher than its full year fresher hiring numbers in prior years.
"On the talent retention side, we continue to be the industry benchmark. By continuing to invest in our people, giving preference to internal candidates for the most exciting open positions, providing global deployment opportunities, fast track career paths linked to learning, and promotions to over 110,000 employees, we have been able to retain our best talent and overcome supply side challenges," said Milind Lakkad, Chief HR Officer.
Its LTM IT Services attrition rate stood at 15.3% as compared to 11.9% in the previous quarter, which the company claims is lowest in the industry. Rivals Infosys and Wipro, that also reported their respective earnings today, said that there attrition rates rose to 25.5% and 22.7% respectively.
“Sustained investment in organic talent development, progressive workplace policies and a vibrant culture that empowers individuals and fosters creativity, have resulted in a long-term track record for best-in-class talent retention," TCS said while announcing its Q3 results.
TCS reported a 12.3% jump in quarterly profit on Wednesday at ₹9,769 crore for the quarter ending December from ₹8,701 crore a year ago, boosted by a demand for digital services such as cloud. The company said it has crossed hit the $25-billion revenue mark in the calendar year 2021.
The IT giant has also announced share buyback of up to ₹18,000 crore at ₹4,500 per share. The board has also declared a third interim dividend of ₹7 per equity share of ₹1 each of the company.