'TCS continues to have the lowest attrition rate in the industry'
Hindustan Times — February 27, 2007

S Padmanabhan, executive VP and head (global HR), TCS, tells Nuzhat Aziz what makes the company one of the best employers in the IT industry.

In 2006, TCS added about 15,000 employees, taking its total strength to over 70,000. How do you manage such a huge workforce?
Tata Consultancy Services (TCS) employed 23,849 people in the first nine months of the current fiscal. This brought our total strength to 83,500 by the end of December 2006. We will be adding over 6,000 employees by the end of March. Managing such a huge workforce is a challenge. In TCS, we have put in place processes, policies and systems that have matured and that can deal with a huge workforce.

The key is the digitised self-service environment created for the employees, coupled with mature digital processes that cater to the requirements of different HR functions such as recruitment, management of allocation, talent management, development, competency management among others. Besides offering employees well designed career growth paths through competency development programmes, TCS also participates in several surveys to identify essentials for a better workplace.

TCS has a huge percentage of overseas employees — almost 10 per cent. Please elaborate on your international work force.
TCS is a global IT service organisation and our multinational workforce reflects our global identity. There has been a significant increase in our foreign recruitment — a jump from 6.5 per cent last year to 8.8 per cent of our total employee base this year. About 8,000 employees of our global workforce are from 65 different nationalities including Chile, Brazil, China, Romania, Australia, Mexico, and Hungary. We understand the social and local needs of people from different places and work on our policies to suit local requirements.

For example, in TCS China, we have more than 800 employees of which 90 per cent are locals. In Brazil we have 1,000 employees, Uruguay has 600, and 1,000 in Chile. The significant rise in our multinational workforce is key to positioning TCS as a global company. The number of non-Indian employees will continue to grow as we expand our operations. We will recruit in significant numbers in Latin America, China and the United States. We have serious expansion plans in these countries.

How do you tackle attrition, one of the biggest issues facing the IT sector? Any programmes to retain employees?
As an employer of choice in the IT industry and winner of several best employer awards, TCS continues to have the lowest attrition rate in the industry — 10.8 per cent — as against the industry attrition average of about 15 per cent. Through a combination of performance, career and aspiration management, TCS is able to offer young professionals an unparalleled experience at the forefront of the global technology industry.

TCS has been able to retain talent by offering software professionals a clear defined career growth path. This includes ability to work in diverse geographies across TCS' network of 169 offices and development centres in 35 countries, as well as on new technology platforms and domains like banking, telecom, life sciences and retail. This is facilitated by a promotion policy, which is performance-based.

Our compensation structure is based on experience in terms of skills, technology and domain expertise and is on par with the industry. Our comprehensive training programme, scope for career growth and competitive compensation packages all contribute to a low attrition rate.

What are your policies to achieve growth and retain talent? Any particular programmes which the company offers?
As an organisation with a diverse workforce, it is important we understand the specific requirements of our diverse workforce and respect these special requirements through policies. For instance, continuity of service is considered in case of women employees who choose to quit temporarily due to family commitments and intend to rejoin later. Besides, TCS also follows a flexible policy that facilitates job rotation and allows movement across different job roles and functions.

Our add-ons include subsidised canteen facilities, health insurance for self and family. Many of our TCS branches also offer recreation facilities. TCS has also extended the benefits of its Adoption Leave Policy to male associates. This means that associates of both genders are eligible to three months paid leave after they adopt a child. TCS also has other add-ons such as sabbaticals, joining spouse overseas, part-time or work from home facility, holiday homes across the country and welfare trust facilitation for higher education.

Also, as employees of the Tata group, our associates get discounts on products and services of other Tata Group companies.

What kind of innovative programmes do you undertake to encourage employees?
TCS offers its employees a flexibility of choices on career streams across domains, technologies and services. Professionals can rotate across roles from business development, project manager, and a domain or technology specialist. TCS also upgraded its competency management process with the introduction of the Integrated Competency and Learning Management System. This tool enables role-based competency development, establishing competencies as the currency to measure growth.

The Learning Management module contains customised learning assets to upgrade competencies. TCS also offers continuous learning programmes for professionals who can continue to develop skills through certificates, masters and doctorates. For instance, we encourage professionals to take up exclusively constructed masters programs at the IITs, Jadavpur University, Anna University, etc.

How do you address career growth? If someone starts off as a coder and wants to shift to marketing, how do you encourage that? What are the options for career flexibility?
TCS offers its professionals flexibility of career choices across functions, domains, technologies and services. Professionals can rotate across roles from business development to project manager to a domain or technology specialist. TCS encourages job rotation and allows movement of associates across different job roles and functions. For instance, employees can move from a technical role to HR, finance or learning and development to facilitate their professional requirements and individual aspirations.