India's top software exporter Tata Consultancy Services Ltd (TCS) has given 8 to 12 per cent salary hike to its employees in the current year, even as the IT firm said that it expects to hire lesser number of people (gross) on account of higher efficiency and increased automation of processes, said the media reports.
"About 30,000-32,000 freshers will join us in the coming months," TCS Executive Vice President and Global Head HR Ajoy Mukherjee said adding that the number of lateral hires will be lesser this year, taking the overall gross hiring number lower than last fiscal.
Mukherjee attributed this to falling attrition rates over the past few quarters, higher productivity and increased use of automation. Attrition rate was at 15.5 per cent LTM basis.
The company, which posted a stellar results with 72.7 per cent growth in net profit for January-March 2016 quarter, has increased salaries of its employees in India by 8-12 per cent and by 2-6 per cent for those working onsite.
"Wage hikes will be at an average of about 8 per cent, going up to 12 per cent for top performers. Depending on the geography, our overseas employees will get hikes of 2-6 per cent," Mukherjee said.
He added that the company has already given out 100 per cent variable pay. The salary hikes are effective from this month.
During the January-March quarter, TCS added 22,576 employees (gross), while on a net basis the addition was 9,152, taking the overall employee strength close to 3,53,843.
TCS completed its highest ever hiring of over 90,000 new employees globally during the year, Mukherjee said.