There are rumors that TCS has fired nearly 25,000 people in the middle management and above. There were protests and some of the trade unions have also asked IT staff to join unions.
A case was filed in the High Court and the court has stayed the firing of people terming it as illegal.
There are also recording of exit interviews floating around which, if true, shows that it is not just about performance.
Two things about the recent TCS statement issued via their Twitter handle yesterday
1) The data that they had provided is for the period till December - Most of the letters have been issued in December or January which make them effective from January or February. Their data doesn't include the fired people
2) They have also used the word involuntary - Which is not clearly defined
Many company does similar stuff of asking people to go when they are on bench, but not in such large scale that is being talked about. However, the same is illegal as per the current labor law. All the businessmen are asking for the government for labor reforms which basically allows them to hire and fire. Till that is done this act is illegal.
In the current context that it is illegal, what could they have done differently?
1) Everyone working in the IT sector knows for a fact that companies do not grow at 40-50%. The new norm is around 10-15% and we need to reset everything to align to that.
2) They could have delayed promotions - They could increased the time an employee has to spend in a role before getting promotion. For eg., if an employee has to be spend 4 years before getting a promotion change it as 5 years.
3) In case the company is stretched in terms of profitability - they can stop giving hikes. All IT companies have variable pay and they can decide not to pay that.
TCS also has to understand that the negative perception that has been created will cause even good people who are currently not impacted, to think about their job security and leave them. This will definitely cause an uptick in their attrition once the dust settles on this.
There is another IT company which is still impacted with high attrition due to one bad HR move made few years back.
All in all TCS has lost its image of a company which provides job security like a government job.
A case was filed in the High Court and the court has stayed the firing of people terming it as illegal.
There are also recording of exit interviews floating around which, if true, shows that it is not just about performance.
Two things about the recent TCS statement issued via their Twitter handle yesterday
1) The data that they had provided is for the period till December - Most of the letters have been issued in December or January which make them effective from January or February. Their data doesn't include the fired people
2) They have also used the word involuntary - Which is not clearly defined
Many company does similar stuff of asking people to go when they are on bench, but not in such large scale that is being talked about. However, the same is illegal as per the current labor law. All the businessmen are asking for the government for labor reforms which basically allows them to hire and fire. Till that is done this act is illegal.
In the current context that it is illegal, what could they have done differently?
1) Everyone working in the IT sector knows for a fact that companies do not grow at 40-50%. The new norm is around 10-15% and we need to reset everything to align to that.
2) They could have delayed promotions - They could increased the time an employee has to spend in a role before getting promotion. For eg., if an employee has to be spend 4 years before getting a promotion change it as 5 years.
3) In case the company is stretched in terms of profitability - they can stop giving hikes. All IT companies have variable pay and they can decide not to pay that.
TCS also has to understand that the negative perception that has been created will cause even good people who are currently not impacted, to think about their job security and leave them. This will definitely cause an uptick in their attrition once the dust settles on this.
There is another IT company which is still impacted with high attrition due to one bad HR move made few years back.
All in all TCS has lost its image of a company which provides job security like a government job.
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