Cognizant announces 1% annual salary hike with 4-month delay in increments: Report
PTC News Desk: Cognizant Technology Services, listed on Nasdaq, has announced that it will defer salary hikes for its employees this year, with increments now scheduled to be awarded on August 1.
The company emphasised its ongoing commitment to recognising the hard work and dedication of its associates through merit increases and bonuses. In a statement to Business Standard, Cognizant affirmed that merit increases for eligible employees will be implemented on the revised date.
The company highlighted that the majority of its associates have received four merit increases within the past three years, with the latest cycle occurring on April 1, 2023. Additionally, Cognizant recently distributed annual bonuses to eligible employees worldwide, further demonstrating its commitment to acknowledging the contributions of its workforce.
Cognizant, which employs approximately 250,000 people in India out of a global headcount of 347,700 as of December 31, has seen a decrease in its voluntary attrition rate. As of the December quarter, the attrition rate was 13.8%, down from 16.2% in the previous quarter and 26% year-over-year. This reduction reflects a broader downtrend in attrition rates across the industry.
During the December quarter, Cognizant’s headcount increased by 1,100 from the previous quarter but decreased by 7,600 compared to Q4 2022. The company also promoted 30,000 employees over the past year.
Under the leadership of CEO Ravi Kumar S., Cognizant has been undergoing a significant transformation. In the latest earnings report, Kumar highlighted the company’s efforts to adapt to large deal demands, improve execution across all service lines, and enhance its capabilities in generating and managing substantial contracts.
The company has focused on automating processes and utilizing productivity tools to create repeatable solutions and maintain a consistent, efficient delivery model for large-scale deals.