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How is TCS solving its high attrition problem?

Although TCS denied that the reason for this bonus of Rs 2628 crore is to bring down the attrition rate, but admitted that it should have a positive impact.

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N Chandrasekaran, MD & CEO, TCS
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Tata Consultancy Services (TCS) was India's most profitable firm before Mukesh Ambani-led Reliance Industries dethroned it yesterday. But there are bigger issues that TCS top-brass has to deal with -- high attrition. 

For the year ended March 31, 2015, TCS lost 14.9% of its total workforce of over 3 lakh employees. The company lost a total of 47,931 employees in the year, over 13,000 of whom came in the fourth quarter itself. However, in totality, TCS added a little over 19,000 employees in the year. 

India's blue-eyed IT company has been suffering from high attrition rate since the second quarter of financial year '14 and hasn't been able to stem the outflow. Ajoyendra Mukherjee, Executive Vice President and Head of Global Human Resources, TCS told dna that attrition has been going every quarter and the reasons for that is the buoyant job market. "Job opportunities in the market are good," he said. 

The company, naturally, isn't happy with an attrition rate of 14.9% and wants it to come down. Mukherjee said that the company is currently trying various initiatives to contain this high attrition rate. 

Is the special one-time bonus to commemorate TCS' 10-year listing anniversary on the Indian stock markets a ploy in that area? 

Although TCS denied that the reason for this bonus of Rs 2628 crore is to bring down the attrition rate, but admitted that it should have a positive impact. 

Mukherjee said, "In July last year, we gave a dividend to our shareholders and have been thinking ever since how to reward employees." This bonus is a way to acknowledge the role of employees in the company, TCS said. 

In July of 2014, TCS payed Rs 12,750 crore in dividends to its shareholders -- one of the highest-ever dividend payout by an Indian company. 

Although, a massive Rs 9,382 crore of it went to its principal shareholder and parent -- Tata Sons. 

Late last year, TCS was hit by a controversy that the company is letting go of its employee base on a large scale. 

The company had then come out with a statement that only 2574 employees left the company "involuntarily" in the nine months ended December 31, 2014 -- 0.8% of the total employee strength. 

TCS declined to give the total number of employees that were asked to leave for the last fiscal but maintained that involuntary separation is only 1-1.5% of the total attrition. 

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