TCS, Wipro, HCL plan to retain employees amid high attrition

The rising attrition rate has continued to be a big concern for the IT companies in India due to increased demand for technology talent. As per the regulatory filing to the stock exchanges, the attrition rate in the Indian IT services major Tata Consultancy Services (TCS) was at 19.7% in the past 12 months. The company's total workforce stood at 606,331 as of June 2022. On the other hand, Wipro's attrition rate stands at 23.3% as per the company's Q1 result for the financial year 2022-23. Wipro added a net headcount of 15,446 in the first quarter compared to the preceding quarter. Whereas HCL Technologies attrition climbed to 23.8% in Q1FY23 as compared to 21.9% in Q4FY22.

Consequently, these major IT companies have chalked out plans to prevent the 'Great Resignation' and retain their talents. The major IT players are taking steps such as mid-term hikes, promotions, bonuses, etc to avert the attrition crisis.

Here are some of the significant strategies adopted by IT majors to retain employees amid high attrition rate:

1. Tata Consultancy Services (TCS)

Following the company's annual compensation review, employees received salary increases of 5 to 8%, with top performers getting even bigger hikes, TCS said in its Q1F23 financial report. TCS is offering the hybrid model of working, coupled with the existing location-independent agile methodology. TCS has introduced a 25X25 policy which says that not more than 25% of the company's associates work from the office at any given point in time.

2. Wipro

Wipro recently announced offering promotions starting to its employees every quarter starting July this year, and also salary hikes from August. Wipro has made one of the highest hirings in the June 30, 2022 (Q1FY23) quarter compared to its peers like TCS and HCL Tech.

3. HCL Technologies

HCL Technologies added more than 6,000 freshers during the quarter ending June 30, 2022 (Q1FY23) period. The company's total employees count stood at 210,966 in the quarter under review. Since the company's attrition rate has escalated to 23.8%, the IT firm expects this rate to continue in the second quarter of the current fiscal year. Therefore, HCL's Chief Human Resources Officer Apparao VV said the company will be recruiting 30,000-35,000 freshers in FY23 to prevent the company from mass resignation. HCL Technologies has also increased its headcount in tier-2 and 3 centres such as Madurai, Lucknow, and Vijayawada. The company’s present headcount is 2,10,966.