TCS Work from Office Policy Sparks Debate

By Kaustubh Katdareon Mon, Jun 19, 2023 10:47 AM (IST)

Controversy arises as TCS witnesses a surge in resignations among female employees following the implementation of its work-from-office policy.

Tata Consultancy Services (TCS), India's largest IT services company, is experiencing high attrition rates, particularly among female employees, following its decision to end work-from-home (WFH) options.

The policy change has caused resignations to surge, with the loss of remote work cited as a significant factor, particularly among TCS's women workforce, which makes up 35% of the 600,000-strong employee base.

In FY23, TCS retained 38.1% of its female staff, despite women occupying around 75% of top positions.

It is significant that the company lost over 20% of its workforce in the previous fiscal year. Milind Lakkad, the head of human resources at TCS, noted the uptick in female resignations after the WFH policy ended.

He added that while there might be other reasons, the elimination of WFH is the primary cause.

The trend coincides with the rising global acceptance of remote work amid impending global recession threats.

A US survey revealed that 25% of employees opted never to return to the office, marking a shift in workplace preferences worldwide.

Businesses removing the WFH option are experiencing increased resignations.

TCS insists that the exodus of female employees is not due to any form of discrimination.

Why are women employees resigning from TCS?

Prasadh M S, Head of Workforce Research at Xpheno, a specialist staffing firm, highlighted that high attrition rates among specific demographics like gender can impact employer branding and future talent attraction.

A decrease in representation may also disrupt years of diversity and inclusion efforts, leading to potential negative reactions from investors.

Charu Malhotra, Co-founder and Managing Director of Primus Partners, stressed the need for workplaces to establish conducive conditions for women to progress in their careers alongside male colleagues.

Public reactions to the TCS situation are mixed. Ashokha Varshini, an Associate Editor at Thanthi TV, questioned on Twitter why women should be criticized for leaving TCS, considering the domestic challenges posed by the pandemic.

Others, like Chennai-based entrepreneur Krithika Sivaswamy, empathized with the company's stance, suggesting that remote work can sometimes lead to reduced productivity.

TCS defended its decision, stating that in-office work is crucial for team-building, mentorship, and collaboration.

The company believes that physical interactions with senior colleagues are vital for new employees' cultural acclimatization.

Meanwhile, other companies are endorsing remote work. Access Healthcare, for example, permits high-performing employees to work from home permanently via its Home Pod model.

This initiative has been well-received by female employees seeking a balance between work and home life. To track employee performance, the company has implemented an automated performance management platform.