In a surprising turn of events, Tata Consultancy Services (TCS), known for being a prominent employer of women, is witnessing a rise in resignations among its female staff. This development comes as TCS recently decided to discontinue its work-from-home (WFH) policy. The choice to stop remote work is thought to be a factor in the rising number of female employee resignations.
Domestic arrangements were reset during the pandemic, and some women found it difficult to return to work even after the situation had stabilised, according to Milind Lakkad, Chief Human Resources Officer of TCS. Lakkad described this tendency as “unusual” in TCS’s annual report and saw it as a setback to the company’s attempts to promote gender diversity within the Tata Group. Despite the fact that women made up 38.1 per cent of TCS’ net recruits in FY23, the current rise in resignations raises questions about the company’s ability to retain a diversified talent pool.
With over 600,000 employees, TCS boasts a workforce where women represent more than 35 per cent. Historically, attrition rates among women employees have been lower or similar to those of men. Furthermore, women hold nearly a quarter of leadership positions, even though they account for only 14 per cent of the applicant pool.
TCS emphasises that it supports gender equality in remuneration and does not discriminate on the basis of gender. Although specifics were not provided, the company’s overall attrition rate had surpassed 20 per cent by the end of March. TCS has been urging employees to return to the office to foster a deeper organisational culture and believes that in-person collaboration is particularly beneficial for newcomers and junior management.
The pandemic has impacted various sectors, including an increased burden of childcare and care giving responsibilities, leading to women dropping out of the workforce. In response to the higher attrition rates, TCS has resorted to lateral hiring over the past two years.
The situation highlights the challenges faced by organisations in retaining a gender-diverse workforce and underscores the importance of creating flexible work policies that support employees’ needs while maintaining a productive and inclusive work environment.