Generations at TCS: Ever Changing Workforce

The Case of Sudden Attrition

• Jagdish Chaudhari, Leader for Strategic Initiatives at TCS-BPO, was informed that seven out of thirteen team members had quit in a month.
• This team consisted of Gen-X managers and Gen-Y team members.
• Chaudhari had implemented programs to improve retention of Gen-Y associates and was surprised by the sudden attrition.
• He considered the possibility of multi-generational issues and whether existing initiatives were counterproductive.
• Chaudhari decided to investigate the situation beyond his Mumbai office.

Generational Definitions

• Baby Boomers: Born between 1946 and 1965, term popularized by Landon Jones in his 1980 book, "Great Expectations: America and the Baby Boom Generation."
• Generation X: Born between 1966 and 1980.
• Generation Y (Millennials): Born between 1981 and 1999.
• In March 2011, the oldest Gen-Y members were 31 years old.

Gen-Y in the TCS Workforce

• In 2011, the United Nations estimated that 34% of the world’s population was born between 1981 and 1999.
• TCS saw a significant increase in Gen-Y employees, especially in the BPO division, due to hiring fresh graduates (some as young as 21).
• TCS-BPO estimated that Gen-Y employees made up over 70% of their workforce, expected to increase to 85% by 2016.

Generational Differences: Patience and Expectations

• Rajiv Noronha, AVP & Head - Organizational Effectiveness, BPO Services, highlighted differences in patience due to technology.
• Older generations waited patiently for postal communication, whereas Gen-Y expects immediate responses via email and SMS.
• This expectation of immediacy translates to the workplace, where Gen-Y seeks quick recognition and promotions.

Gen-Y in India

• India has a large Gen-Y population due to its young demographic (more than half under 25).
• Indian Gen-Y was shaped by the economic reforms of the 1990s and the entry of MNCs in the early 2000s, the Dotcom boom, and the rise of email.
• Economic growth led to a rising middle class with high expectations for their quality of life.
• Technology and economic changes have influenced India’s culture and family structure.
• The rise of BPO has accelerated the trend of young Indians breaking away from traditional family units, especially as more women joined the workforce.

Cultural Shifts in India

• Ranjan Bandyopadhyay, a senior manager at TCS, shared an example of a woman from a small village who chose to stay in Bombay for work despite being transferred closer to her family in Calcutta, due to the independence it afforded her.
• A report highlighted a shift from "Family First" to "Me First," focusing on personal work, friends, and lifestyle.
• Indian Gen-Y shares a global sense of immediacy but emphasizes financial reward due to economic opportunities.
• They are entrepreneurial, business-savvy, technologically capable, and comfortable with diversity, suited for global interaction.

Challenges of Retaining Gen-Y

• Gen-Y employees are results-driven, highly mobile, and skilled, making retention more difficult.
• They have high expectations of their employers.

The Tata Group

• Founded in 1868 by Jamsetji Nusserwanji Tata as a trading company.
• Expanded into various industries, including textiles and hospitality (Taj Hotel in Bombay).
• Employed over 425,000 people worldwide by 2011-12.
• The TATA group reported revenue of US83 billion in the fiscal year ending March 2011.
• After-tax profit of US5.8 billion.

Tata Consultancy Services (TCS)

• Established in 1968 to support TATA group companies and later expanded to external clients.
• By 2010, TCS employed 198,614 people.
• Services include IT outsourcing, financial back-end systems, and call centre operations.
• Key to the rise of the Indian economy and a major component of the services industry revolution.
• Consultancy services contributed the majority of revenue.
• Banking and Financial Services work contributed 45% of the revenue.
• Telecommunications contributed 15% of company revenue.
• Application Development and Maintenance (ADM) accounted for 49% of revenue.
• Business Process Outsourcing (BPO) contributed around 11%.

Tata Consultancy Services – Best Process Outsourcing (TCS-BPO)

• Grew rapidly from a start-up to a unit with about 34,000 employees in less than seven years.
• Growth was fueled by acquisitions and hiring, including the back-end operations of Citi group.
• By 2010, TCS-BPO had US10 billion in revenue, ranking second in the Indian BPO market (nearly US70 billion).
• Genpact, a leading competitor, noted TCS's rapid growth.
• TCS-BPO had the lowest attrition compared to competing companies in the BPO industry.
• Challenges included integrating acquired groups and establishing the right management structure.
• The "influx" program brought talented seniors from the Technology side of TCS to BPO to harmonize minds.

Gen-Y Programs at TCS

• TCS-BPO had a predominantly Gen-Y workforce, with 50% in 2006, expected to reach 92% by 2020.
• Gen-Y retention and engagement were synonymous with overall employee retention and engagement.
• HR strategies considered differences between Gen-X and Gen-Y employees.
• Programs aimed to:
  • Empower associates at all levels
  • Create a problem-solving culture
  • Encourage decision-making at the lowest level
  • Make associates feel valued and build trust
  • Provide a platform for employees to express opinions and concerns

mPower Platform

• Propel: A forum for managing change and taking ownership
• Catalyst Program: A nominated person from operations becomes a "go-to" resource for people and policy issues.
• HI Pot Program: Augments the skills of high-potential employees
• DAWN: Enhances diversity and inclusivity
• Associate Connect: Breakfast meetings, One on One Connects, and town halls
• Coach Protégé: Senior leaders mentor high performers
• Just Ask: A social networking platform for informal networking and asking questions

Just Ask Program

• An internal social network for TCS employees with four main goals:
  1. Open forum for questions and answers
  2. Early warning system for employee issues
  3. Immediate feedback on policies and programs
  4. Analysis of trends over an associate's tenure
• Over 27,000 posts in a short time were considered a success.
• Encouraged sharing and open dialogue across TCS.

Functionality of JustAsk

• Employees could ask questions about anything, including informal topics like shopping recommendations.
• Formal questions included inquiries about transferring to new locations.
• Encouraged broader learning about the company and provided a quick way to gauge company sentiment.
• Common topics included career development, certifications, and internal transfers.

Technology and Gen-Y at TCS-BPO

• TCS-BPO employees were often more technologically savvy than the average Gen-Y member.
• The need to protect sensitive client information sometimes conflicted with the desire to be constantly connected.
• Employees were often required to leave smartphones in lockers due to the sensitive nature of BPO work.
• This created a contradiction for Gen-Y employees who were used to being constantly connected.

Focus Group Insights

• Employees desired frequent feedback and promotion.
• Managers noted Gen-Y's need for faster results and low patience.
• Gen-X managers and Gen-Y employees had differing expectations.
• Managers focused on what they could control, such as career growth maps, while recognizing that compensation was often beyond their influence.

Next Steps for Chaudhari

• Chaudhari reviewed an internal study that indicated:
  • 10-15% of employees left for personal reasons.
  • 30% found other jobs within the BPO industry.
• The sudden departure of over 50% of a team in one month was an anomaly.
• Chaudhari considered leveraging the Propel initiative for problem-solving.

Exhibit 1: Pew Research Centre Generation Definitions

• Names are drawn from events, changes, or calendar.
• Millennials (after 1980): First to come of age in the new millennium.
• Generation X (1965-1980): Savvy, entrepreneurial loners.
• Baby Boomers (1946-1964): Driven by the post-WWII fertility spike.
• Silent Generation (1928-1945): Conformist, civic-minded, children of the Great Depression and World War II.
• Greatest Generation (before 1928): Fought and won World War II.

Exhibit 2: Trend of Gen Y at TCS-BPO

• Visual data illustrating the increasing proportion of Gen Y employees over time.

Exhibit 3: Comparison of Gen-X vs. Gen-Y Traits

• Compensation: Gen-X negotiates for perks; Gen-Y values resume building.
• Collaboration: Gen-X prefers limited in-person meetings; Gen-Y uses online social networks for collaboration.
• Socializing: Gen-X dislikes corporate politics; Gen-Y attends networking events for career goals.
• Corporate Loyalty: Gen-X sticks around if given resources; Gen-Y job-hops if judged on seniority.
• Attire: Gen-X is aware of professional appearance; Gen-Y may be oblivious to company culture.
• Work Hours: Gen-X prefers flexibility; Gen-Y values productivity over standard workweek.
• Communication: Gen-X prefers calls during office hours; Gen-Y uses BBMs, IMs and social media.
• Spending Habits: Gen-X believes in saving; Gen-Y spends on lifestyle and technology.

Exhibit 4: Just Ask: Tata Consultancy Just Ask Sample Screenshot

• Visual representation of the Just Ask platform interface.