Tata Consultancy Services

EMPLOYEE RETENTION POLICY Group 3

Section A
Sounak Lahiri – IPMX12042
Souvik Chatterjee – IPMX12043
Swati Singh – IPMX12050
Vaibhav Chauhan – IPMX12051
Varun Pandey – IPMX12052
 INTRODUCTION
• Tata Consultancy Services Limited (TCS) is an Indian multinational information
Technology (IT) service and consulting company headquartered in Mumbai,
Maharashtra, India. It is a subsidiary of Tata Group and operates in 149 locations
across 45 countries.
Issue at hand-
• The attrition rate in TCS remained the best in the IT industry at 11.3 per cent In
the last 12 months.
• Their total employee strength on 31 March 2019 stood at 4,24,285
• In their recently released annual reports, TCS has added 29,287 employees
• Taking an average of the last 11 fiscals from FY09 to FY19, TCS added 28,052
employees every fiscal, much higher than the industry average.
 EMPLOYEE RETENTION POLICY

• In this project, we will discuss the overhauling of TCS’s efforts towards EMPLOYEE
RETENTION through its revamped policies of

• RECRUITMENT
• COMPENSATION
• TRAINING
• EMPLOYEE WELFARE
 HR POLICIES UNDER DISCUSSION:

Following Are The Key

Contributors To This Attrition
Rate

Moderate To Low Salaries

Recruitment Process
TCS was a relatively poor Lack Of Training Facilities
Recruitment processes in TCS,
paymaster for entry level and Training in TCS used to be a very
even a few years back, was not up
middle management positions reactive function, with limited
to global standards and lacked
when compared to its similar sized resources and knowledge base.
several key points of advantage.
peers.
HR POLICIES AND IMPROVEMENTS

• RECRUITMENT:
• National Qualifier Test
• TESTimony, EngiNx, GameOn, and CodeVita to spot and hire top talent.
• TCS DIGITAL 2020
• BRING YOUR BUDDY referral program
• One of the top IT employers in US and UK
• COMPENSATION:
• Better Entry level salaries and variables
• Generous long service awards and ESOPs
• Improved variable pay package
• Enhanced Medical Insurance covers
• Excellent Group Life Insurance cover
• Onsite employees entitled to better monetary benefits w.r.t. immigration, relocation, settlements, school,
housing etc.
HR POLICIES AND IMPROVEMENTS

• TRAINING:
• Learning portals like iQMS Wiki, KNOWMAX and MindWorks.
• Training portals like iEvolve, Safari and TACTICS.
• Collaboration tools like Fresco talk, Knome and GlobeSmart.
• Industry solution specific Centers of Excellence for sharing of best practices and ready reference.
• EMPLOYEE WELFARE:
• Adherence to Tata Code of Conduct – no discrimination of the basis of diversity in race, nationality,
religion, ancestry, marital status, gender, age, ethnic origin, physical ability, and sexual orientation.
• Numerous welfare initiatives like excellent work-life balance, job security, extended parental leave, a
virtual support group on child psychology, a mentoring program for junior women employees, special
leadership development programs for senior employees, and parenting workshops for working parents.
• TCS Center of Excellence for Accessibility - IT solutions for differently-abled individuals, aiding their
integration into the workforce, Career Hub.
• Tata Group Safety Policy and its Occupational Health and Safety (OHS) Policy.
• Free Transport with focus of safety of Women Employees and carpooling App Ko-Ride.
 IMPACT

As the above mentioned HR policy 31 March 2019 FY 2018-19

improvements have been implemented FY 2017-18 In its recently released
annual reports, TCS has
and the changes stabilized, TCS has seen a All IT companies, except added 29,287
The total attrition
rate in Tata
gradual but steady change in the TCS, reported higher employees. Their total
employee strength on Consultancy
attrition rates of 17-
qualitative and quantitative aspects of 22% during the April- 31 March 2019 stood at Services (TCS) fell to
4,24,285. The 11.8%, while that of
overall perception and employee churn. June quarter of FY
2017-18. Attrition was proportion of women in IT fell to 11% in the
Over the last few years, TCS has seen a the lowest at TCS at TCS' workforce rose to
35.9 per cent, and the
fourth quarter of
10.9%. the fiscal year 2018-
steady drop in its attrition rates and the total number of 19.
nationalities
overall employee satisfaction level, which represented stood at
is measured by the company internally, 147.

has been noticed to be increasing.

 RECOMMENDATION
Since TCS named Rajesh Gopinathan
as CEO and N. Ganapathy
Subramaniam as chief operating
officer (COO) in February 2017, the
company has continued with the
senior leadership put in place
by Natarajan Chandrasekaran, who
was elevated as chairman of Tata
Sons, the holding company of the
$103-billion Tata Group.
Stable leadership at the top, along with low attrition rates,
and its better HR policies, has helped the company return to
industry-leading growth and renewed employee satisfaction.
The new structure can make a lot of sense since it pushes
responsibility and decision making down to executives who
are close to their customers. TCS is a well-run organization
with a deep bench of executives ready and capable of taking
on these responsibilities.
Continues caring for its employees and reinventing itself
from time to time as a workplace where employees look at
long term career prospects and satisfaction at work.
Questions ?