TCS announces Q4 results – No VA hikes for promoted associates

TCS announced yet another stellar performance in terms of numbers showing  59.69% growth in Q4 in YoY basis and 9.69% profit growth from Q3 of FY 2010. For the year ending April 2010 TCS has 29% net profit over last year. With such a nice performance employees would have expected a reasonable hike, but it was not to be.

Apart from the anticipated 5-15% hike in basic component (same percentage in HRA etc), the VA hike for the associates promoted in Jul 2009 and Jan 2010 was not announced, instead they will receive their due only after completing 1 year in current role.

But another statistic might point why they aren’t bothered about promoted associates as TCS has hired 16851 associates in just last 3 months, with a net addition of 10775 associates in-spite of very high attrition.

………………….. Letter from TCS HR ……………………

Dear TCSers,

This has been an excellent year for us where we have delivered revenue growth with significant uptake in margins despite a challenging business environment. We managed the dynamic demand environment well by controlled recruitment, increased talent rotation and higher offshore leverage. I would like to thank you for your hard work, dedication and tremendous effort for this excellent overall performance.

I am pleased to announce that the management has decided to pay 125% of the potential quarterly component of the variable pay (QVA) for the quarter ended March 31, 2010. This will apply to all eligible employees on India payroll. The bonus and sales incentives for other regions, where applicable, will also be paid out as per plan.

The annual appraisal process for FY10 has been completed on time. This has been a significant achievement considering the scale and the geographic spread of our operations. I would like to thank you and all the units for completing this exercise on time.

I am very pleased to inform you about the annual increment for FY11. The average increment at offshore i.e. for employees on India payroll would be 10%. In addition, those who were promoted would see a revision in their variable pay as the variable for new grade would be effective post completion of one year in the new grade. Including promotions, the average annual increment would be 13%. For other regions, the increment would be country specific and range from 2 to 4% for the Major Markets and 2 to 10% for Emerging Markets. The individual increments would vary based on individual performance as per our annual appraisal process.

If our business results are better than the base plan for FY11 then, we can expect to be rewarded through the quarterly variable (QVA) route as has been the practice in the past. Considering the growth in demand and the opportunities ahead of us, I am sure with the right focus, rigour and collaborative effort we can deliver results that are better than the base plan.

I look forward to your continued support for TCS to deliver superior performance across all parameters and provide the “Experience of Certainty” to our clients globally.