Tata Consultancy Services (TCS), one of India’s largest IT firms under the Tata Group, has announced a policy change that has left many of its employees concerned. The company has revised its bench policy, limiting the duration an employee can stay unassigned (on the bench) to just 35 business days per year. This change means that every associate is now expected to log a minimum of 225 billable days annually, or risk facing consequences related to performance reviews, compensation, and even career progression.
This stricter rule is being viewed as a move to boost productivity and optimize project assignments, but it has raised alarm among employees who are between projects or in transition. If they exceed the 35-day bench limit, they could be marked as non-performers, which might affect their variable pay, promotions, or continued employment. Additionally, those on the bench are now required to report to the office, regardless of their project status, adding to the pressure for many who were previously allowed flexibility.
Adding to employee woes, TCS has yet to finalize salary hikes for this fiscal year, despite delivering strong quarterly financial results. The company’s HR Chief, Milind Lakkad, stated that pay increments will be discussed and implemented later in the year, offering no immediate clarity to anxious employees. This delay is seen as particularly demotivating at a time when the industry is facing rising inflation and a competitive job market.
Moreover, TCS has reported a rise in attrition, with the rate climbing to 13.8% in Q1 FY26, up from 13.3% in the previous quarter. The increase indicates growing dissatisfaction among employees, potentially driven by limited bench flexibility, delayed compensation reviews, and stricter work-from-office policies.
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In summary, while the new policy may help TCS streamline resource allocation and enhance billability, it comes at the cost of employee morale. With uncertainty looming over salary hikes, increased attrition, and rising workplace stress, many within the company are questioning the timing and impact of these decisions—fearing that they may lead to a greater talent drain in the months ahead.
