Quiet Firing

Here is my take on the why the recent policy changes, band distribution and hikes are happening.

Before covid, all the services companies had a salary structure based on city and experience of a candidate. While someone was offered job, he/she couldnt negotiate because they was plenty of resourses waiting to queue to accept offer.

After covid, there was the great resignation and all the WITCH companies were forced to increase their salary slab because they were not getting enough resources because all were jumping ships and lot of people rejected offers even after accepting it.

The sudden surge in salaries caused some unbalance in their working model, earlier they used to pay a tiny margin of money they charged to the client to the employees. But now they were spending more of that money on salaries which reduced the profits in general.

Also there are other roles, which are not billed but need to be paid from these profits, also resources in bench, not yet billable. That is why they slowed down hiring last year, but I believe the new strategy is to make the working atmosphere so bad that the people who joined TCS in recent years with high salary quit and regain some of the older business structure back. Now the demand is less than supply, so the salaries offered are already 30-40% less than what it was a year before.

Most of the employees before the great resignation or are working in tcs for years are still underpaid and are highly unlikey to resign because they are used to the TCS culture, they dont mind this toxic enviornment. Others who joined only for better pay will eventually leave because of the bad enviornment. This might be the reason for all the new changes which are not in anyway helping the employees.