TCS Notice Period increased to three months

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Ever heard of 200% Hike in Salary?? Get ready to deal with 200%(3 Months) rise in Notice period

Change in the TCS notice period!!! Tata Consultancy Services, One of the India`s largest IT services company, well equipped with a family of around 300, 000 employees is all set to raise its notice period from 30 days to 90 days. It will come into effect from March 2016 onwards. Before 2007; it was 3 months. From October 2007 onwards; it was 1 month but now on the basis of employee`s feedback and after reviewing the notice period policy. The management has again decided to increase it to 3 months. TCS has taken this giant step stating that this movement has been taken to decrease the attrition rate. Even Accenture has 3 months of the notice period.Now, let time and tide decide, how fruitful it is, in order to retain the employees. There might be other effective ways to retain the efficient resources.

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The three-month policy has its own pros and cons. Pros from the company`s perspective are that they will try to retain the knowledge as much as possible in the notice period of three months. From the employee`s perspective; if they want to look for a suitable job, they will get three months. Cons are that most of the company don`t want to wait for three months in order to fill their gap. They prefer immediate joiners. Moreover, the new joiners will think twice before joining. As they will come to know about this new notice period policy. It will be a drawback for the company as they might loose some bright mind. In addition to this, one is not supposed to take leave during the notice period, even if it`s required. It again affects the well-being of the employee. In such a scenario, you can`t expect 100% performance from them. It would be like a formal routine of filling the time sheet and waiting for the pink slip

As the company acts aggressively in profit-making business, the employees keep looking for changes and hikes. It`s an on-going process. You can`t deal with it by taking steps in against of the employees. On the contrary, one should go for increasing pays and perks, bonus and incentives or other lucrative offers for decreasing its high attrition rate. Two years back, the attrition rate of TCS was 12-13% which is now being reported at 15.9% at the end of third quarter. This change is no doubt significant. But, one should go to the roots of reason rather than creating difficulties for its employees.

Data Source and Reference: TCS to increase notice period to deal with attrition

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