Why Many Employees Leave TCS After One or Two Years: An in-depth Analysis

Tata Consultancy Services (TCS) is one of the world's leading IT service firms, known for its comprehensive suite of services and strong track record in the IT consulting sector. However, a significant number of employees leave TCS after just one to two years of joining for a variety of reasons. This article delves into the key factors driving this trend and analyzes why these employees may seek opportunities elsewhere.

Reasons for High Turnover in TCS

The decision to leave TCS after a short tenure can be attributed to several factors, including career growth opportunities, work-life balance, compensation and benefits, skill development, company culture, project assignments, and market opportunities. Understanding these factors can help both employees and organizations identify potential issues and improve retention rates.

Career Growth Opportunities

Employees often seek faster career advancement. At TCS, the first two years are marked by numerous promotions and appraisals. The excitement and motivation generated by these early milestones can wear off quickly, leading to dissatisfaction and a desire for greater career progression. For example, a fresher joining as an Assistant Systems Engineer-Trainee in October 2014 would experience significant growth within the first two years, but subsequent promotions and salary increments may not meet their expectations. This can result in a decline in job satisfaction and increased turnover.

Work-Life Balance

The consulting and IT roles at TCS can demand long hours, which many younger employees prioritize over a better work-life balance. Companies that offer more flexible working conditions may appeal to these employees, leading to a higher likelihood of leaving TCS. Long working hours can take a toll on both physical and mental health, contributing to job dissatisfaction and a search for more balanced work environments.

Compensation and Benefits

Competitive salary and benefits packages are crucial for retaining employees. Although TCS offers competitive packages, many employees may still find better offers from other companies, prompting a switch. The market for IT consulting roles is highly competitive, with numerous companies offering attractive salaries and benefits. Employees often weigh these offers carefully and may choose to leave TCS for a more lucrative opportunity.

Skill Development

Learning and skill development opportunities are particularly important for fresh graduates. If employees perceive a lack of training or challenging projects, they may look for roles that better support their professional growth. TCS, like many large organizations, may not always provide the same level of hands-on experience and learning opportunities as smaller or more agile companies. This can lead to a sense of stagnation and a lack of growth, with employees seeking new challenges and learning experiences.

Company Culture

The work environment and company culture play a significant role in job satisfaction. If employees feel disconnected or unhappy with the company culture, they may seek a better fit elsewhere. TCS, like any organization, has its unique culture and management style, which may not align with every employee's expectations. When employees do not find a good match, they are more likely to leave in search of a more culturally resonant environment.

Project Assignments

TCS employees may be assigned to projects that do not align with their interests or career goals, leading to dissatisfaction and a desire for more fulfilling work. If employees feel their skills and interests are not being utilized effectively, they may look for new opportunities that better match their professional aspirations.

Market Opportunities

The IT job market is highly competitive, and many employees receive offers from other companies that are more appealing. These offers may come with better salaries, career development opportunities, or more flexible work conditions. As a result, employees may choose to switch companies to take advantage of these opportunities.

Analysis of Employee Experience at TCS

The employee experience at TCS during the first two years can be highly motivating, but it often pales in comparison to what follows. A fresher joining TCS in October 2014 as an ASE-T Assistant Systems Engineer-Trainee with a starting salary of 3.3 LPA (Rupees) would experience a series of significant promotions and salary increments within the first two years. For example:

In October 2015, the employee would be promoted to ASE Assistant Systems Engineer with a salary increment of around 12-15%, leading to a package of 3.8 LPA.

In April 2016, the employee would receive their first appraisal, with a salary increment of 7-12%, raising the package to 4-4.3 LPA.

In October 2016, the employee would be promoted to SE Systems Engineer again, with a similar salary increment, resulting in a package of 5 LPA or slightly less.

In April 2017, the employee would receive their second appraisal, again with a similar salary increment, raising the package to 5.3-5.5 LPA.

By the end of 2.5 years, the employee would have received four increments, with an overall salary hike of around 2 lakhs (Rupees).

However, if the employee remains in TCS, the salary would increase from 5.5 LPA to 5.8-5.9 LPA in the next appraisal, provided they are not victims of internal politics. In contrast, if the employee switches to another company, they could potentially earn a package of 7.5-8 LPA. Despite the higher salary at TCS, the process of reaching this package would take several more years. Therefore, many employees find the prospect of switching to another company more appealing in terms of both salary and career progression.

Conclusion

The trend of higher turnover rates among younger employees in the IT consulting sector, including at TCS, is a complex issue influenced by various factors. By understanding these factors and addressing them proactively, TCS and similar organizations can improve employee retention and satisfaction. Implementing measures to enhance career growth opportunities, improve work-life balance, offer competitive compensation and benefits, foster a positive company culture, and ensure meaningful project assignments can help mitigate turnover and keep top talent.