We are currently at around 11.5% on an LTM basis (last twelve months). We were at 12-13% and we have had a peak of 16% in the past. So in a high demand environment 12-13% is something we have seen in the past. But, this significant quarter-over-quarter increase will start to fade in a few quarters.
Menaka Doshi: You’re setting us up for a possibly worse attrition rate, but you’re hoping it will subside in the first quarter of fiscal 23. How is that hurting your ability to achieve the growth you want?
Rajesh Gopinathan: Again, like I said, having spotted the demand opportunity earlier, having invested in that capacity, currently the capacity squeeze is not impacting our growth momentum yet.
But our bench is pressed by the kind of attrition that we are seeing and it is not stable. So we are compensating for that with more campus hires and more tactical side hires that we do. So currently it does not affect our ability to meet the demand which is immediately with us. But this is something that we have to be very vigilant about and remain vigilant about and that is why the 78,000 are coming.
Menaka Doshi: If you wanted to hire over 78,000 people, say, is there talent available?
Rajesh Gopinathan: Oh absolutely, we are in a good position to hire. 70% of what we hire now, in fact over 70%, comes directly to us.
And, the investments we made in the TCS National Qualification Test and the platform we created, over 3-3.5 lakh people participate in each of our hiring waves. Thus, we always only hire 1 in 5 people or less who intend to apply to us.
We did it in a very digitally transformative way. Even those who are close but did not qualify, we go back to them and share with them the areas where they were missing because they are interested in working for us, we are interested in them and then they take advantage of it for their competence themselves. We are very interested in bringing them. So the digital platform that we have created is an extremely powerful dataset that we have and constantly leverage. This is why we can, in the middle of the year, go from 45,000 to 75,000, because we have the pool available with us.
Menaka Doshi: I’m looking at income per employee. Accenture has 6,24,000 employees and total sales of $ 50 billion in fiscal year 21. You have 5,288,748 employees with estimated total sales of approximately $ 25-26 billion this year. year. Does this ratio change anytime in the short term, over the next three to five years?
Rajesh Gopinathan: It is not a measure that we are targeting per se. Like I said, in most areas you will think of value added per employee. And, the economic added value per employee that we have is actually much higher or almost, I would say 70 to 80% higher than the next biggest competitor. This is a more important measure because the key resource for us is the employee and for every employee are we able to create this economic value? That’s the key question for us, and we’ve built our model to maximize that.
Menaka Doshi: Doesn’t that have a direct relation to the costs — wages or compensation per employee?
Rajesh Gopinathan: It is a free market. Everyone is in the same space, in the same operating model.