TCS Reports 53% Workforce 'Return To Office', 12-15% Salary Hike In Q1 FY24

With a focus on talent development, compensation and office return, TCS in Q1 FY24 witnessed a milestone as over 53 per cent of its workforce has resumed working in the office three days a week.

Milind Lakkad, Chief Human Resource Officer at TCS said, "We remain focused on developing, retaining and rewarding the best talent in the industry, and enhancing their effectiveness by bringing them back to the office to foster our culture."

One of the notable achievements was the Return to Office initiative, which gained momentum during the quarter. Lakkad revealed, "Our Return to Office initiative is picking pace, with 53 per cent of the workforce already in office thrice a week."

Additionally, TCS placed great emphasis on talent upskilling in Q1 FY24, with employees dedicating an impressive 12.7 million learning hours towards acquiring market-relevant skills such as generative AI, cloud computing, data analytics, and more. 

Moreover, TCS recognised the contributions of exceptional performers within its ranks through its latest annual compensation review. Outstanding individuals received a notable 12-15 per cent raise. As stated by Lakkad, "TCS has handed a 12-15 per cent raise for exceptional performers in its latest annual compensation review, and also commenced the promotions cycle."

While some industry players deferred their pay hikes, TCS said it rolled out salary hikes for employees effective from 1 April. This decision, however, had a slight impact on the company's operating margin, revealed Samir Seksaria, TCS CFO. 

"Our operating margin of 23.2 per cent reflects the 200-bps impact of this hike, offset through improved efficiencies," said Seksaria.

TCS added 523 employees to its workforce during the quarter, bringing the total headcount to 615,318 employees in Q1 FY24.

TCS in Q1 FY24 witnessed notable growth in revenue, with a year-on-year (YoY) increase of 12.6 per cent, reaching Rs 59,381 crore. The company's revenue growth was particularly notable when considering the constant currency figures, which exhibited a YoY growth rate of 7 per cent.

Also Read: TCS Reports Strong Q1 FY24 Results: Net Profit Rises 17%