Why TCS Freezes Salary Hikes Amid Profits: A Critical Analysis

Many TCS employees have been questioning the company's decision to freeze salary hikes even as it reported substantial profits, such as the impressive 8049 crore profit in the previous quarter. This article explores the underlying reasons behind this move, particularly in the context of other Tata subsidiaries and the company's internal dynamics.

Background and Context

It is important to understand that the practice of freezing salary hikes is not unique to TCS, as evidenced by the lack of significant hikes in other Tata subsidiaries. Companies like Tata Motors and Tata Steel have historically provided larger hikes, often ranging from 15% to 20%. In contrast, TCS employees have experienced fewer and smaller hikes, with many experiencing hikes as low as 4% in 2019.

Internal Dynamics and Discrimination

There's a perceived sense of discrimination within TCS, particularly regarding the pay scale. It is often argued that not every member in a TCS team contributes equally to the project, with some employees performing redundant tasks or acting as support/maintenance personnel. This has led to frustration among employees who feel undervalued and underappreciated.

Project Team Dynamics

A standard TCS project team consists of four to five members, but in many instances, only two individuals are actually needed to handle the project effectively. This has raised questions about the fairness and equity within the company. Moreover, there are instances where employees are cross-skilled to ensure that TCS can compete for and win projects over other companies, such as Infosys (Infy) and Tech Mahindra (TechM).

Resignation and Attrition Rates

The high attrition rate and frequent resignations in TCS are often attributed to the company's large number of resources, making many employees feel dispensable. Additionally, the work in TCS is perceived to be fairly straightforward, and employees with basic skills in tools like ServiceNow, MS Excel, and PowerPoint are considered sufficient to handle the tasks.

Employee Perception of Security

Despite the perception of job security, employees often feel that focusing solely on job security is not necessarily the best approach. Some TCS associates are reportedly accepting lower salaries in exchange for the safety and stability provided by the company. This mindset is particularly common among female associates who enjoy minimal work pressure and are often praised for their dedication.

Workplace Culture and Productivity

The company culture in TCS is described as having a certain level of drama, particularly in the case of female employees who are known to arrive early and create gossip, only to return and work for a short period. This behavior is influenced by the norm of early arrival, often to prove their punctuality and dedication.

Conclusion

Given the high attrition rates and the perception that work is not particularly challenging, TCS may not feel the urgency to provide significant salary hikes. The company's focus on job security and employee stability, coupled with the perception that employees are not as critical to the success of projects as they are in other companies, may explain the decision to freeze salary hikes.

Understanding the reasons behind such decisions can help employees and the company work towards a more balanced approach that values both individual contribution and overall company performance.