Tata Consultancy Services (TCS) has announced its plan to promote 1.1 lakh employees in the fiscal year 2025 (FY25), despite the delayed salary hikes.
According to Executive Vice President and Chief Human Resources Officer Milind Lakkad, the promotions are part of the company’s initiative to drive employee growth. By offering merit-based promotions in lieu of the expected salary increase, the company hopes to retain its top talent. TCS is also set on adding 42,000 trainees to its workforce in FY26. The promotions and the hirings are meant to backfill the positions left vacant due to attrition.
The promotions, as per executives in TCS, are a part of the company’s strategy to retain talent and plan for future needs. Chief Financial Officer Samir Seksaria highlighted that the company’s employee-related cost interventions had an impact of about 100 basis points, mostly due to promotions and merit-based advancements. The unconventional move has led to much discussion, but the TCS remains firm on implementing the promotion in an effort to reduce turnover and showcase its recognition of its employees.
Presently, TCS is focused on the growth of its digital talent and is taking active steps to do so. “Last year, we hired 40% digital hires compared to 17% the year before that. This is very strategic for us. For the four quarters, we had 13% attrition on the employee base we have. And we would need people for growth and for back-filling that attrition. And this (promotions) is a good way to do this,” Lakkad shared with The Times of India.