Freshers and Existing Employees Must upskill to Earn More in 2024: TCS CHRO
The stagnant starting pay for new hires in IT organizations has been a source of anxiety for entry-level (Freshers and Existing Employees) employees and recent college graduates for some time.
‘Freshers or existing employees should upskill to earn more’: TCS CHRO Milind Lakkad on stagnant salaries at entry level
Due to an economic slowdown, the IT sector is currently going through a difficult time. The IT services industry is still a well-liked option for students starting their careers, despite these difficulties. Some of the highest-paying job opportunities are found in the IT industry. The industry has been criticized, meanwhile, for the stagnation of entry-level pay growth.
The stagnant starting pay for new hires in IT organizations has been a source of anxiety for entry-level employees and recent college graduates for some time.
When asked about the static compensation at the major computer services companies TCS and Infosys, the chief human resources officer (CHRO) of Tata Consultancy Services (TCS), Milind Lakkad, remarked that in order to earn more, either new hires (freshers and existing employees) or current employees should upskill. This was stated in a recent interview with CNBC TV18. He acknowledged that, for many years, rookie pay has hovered around Rs 3.4 lakh annually.
We encourage people to come from diverse ranks and pay according to talent. New hires and current staff who are eager to upskill can earn twice as much, and for some abilities, compensation can reach Rs 10 lakh.
“We offer close to Rs 10 lakh for innovators,” he continued. We are paying significantly more to hire professionals from NITs and IITs,” Lakkad stated.
In its Q3 FY24 statistics, TCS said that, during the October–December 2023 period, the company’s headcount decreased by 5,680 people for the second consecutive quarter, bringing its overall strength to 603,305.
When considering headcount, it’s important to consider the big picture. Longer-term refers to the fact that we hired a great deal of personnel in FY22 and FY23. Over the last three quarters, we have made use of our entire personnel, and we still do,” he stated.
January 11: TCS announced a 2 percent increase in net profit to Rs 11,058 crore for the third quarter of FY23 from Rs 10,846 crore. In the three months ending December 31, TCS’s consolidated revenue increased by 4% YoY to Rs 60,583 crore from Rs 58,229 crore the previous year, the company reported in an exchange filing.
According to a Ministry of Education National Institutional Ranking Framework (NIRF) report from the previous year, the average starting pay for a recent engineering graduate was reported to be Rs 4.57 lakh in 2022, up 15% from the academic year 2020–21. According to news reports, the average yearly pay of first-year engineering students has climbed by 43 percent over the previous five years. In the academic year 2017–18, an engineering graduate’s annual compensation after graduating from college was approximately Rs 3.19 lakh.
In 2022, an engineering graduate from one of the top 100 engineering colleges made Rs 11.06 lakh a year, which was 60% more than they had five years earlier.
The highest wage for an engineer at the beginning level was offered by IIT Guwahati, which paid roughly Rs 22.5 lakh annually; IIT Delhi paid almost Rs 20.5 lakh. According to a story in the Hindu Businesslike, the average annual income for engineering freshmen at IIT Madras was Rs 17 lakh, while it was Rs 18.8 lakh at IIT Bombay and Rs 20 lakh at IIT Hyderabad.
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