TCS explains why it still pays freshers Rs. 3-4L salary
The Chief Human Resources Officer (CHRO) of India's leading IT company, Tata Consultancy Services (TCS), recently addressed concerns about low starting salaries for freshmen in the IT services sector. CHRO Milind Lakkad emphasized that salaries are determined by talent and urged freshers to enhance their skills for better pay. Fresher salaries have remained around the Rs. 3-4 lakh per annum range for years despite rising inflation and tremendous growth in the Indian IT sector.
Upskilling can double salaries, says TCS CHRO
Speaking with CNBC-TV18, Lakkad explained that freshers and existing employees who upskill can potentially double their salaries, with some skills earning up to Rs. 10 lakh. "We offer close to Rs. 10 lakh for innovators. We are hiring people from NIITs and IITs where we pay a lot more," he said. Lakkad admits that entry-level salary for newcomers has stayed consistent for years. However, he believes the point is, that once they join, they must upskill.
TCS headcount reduction and campus hiring plans
TCS's quarterly results showed a decrease in headcount for the second consecutive quarter, with 5,680 employees leaving between October and December 2023. The total strength now stands at 6,03,305, and attrition levels have dropped to 13.3%. Lakkad anticipates the headcount to moderate further but emphasized that campus hiring remains a crucial aspect of their business. The company maintains its 40,000 fresher hiring target and plans to onboard all those who received offers this quarter.
