Cognizant : This year, Cognizant Technology Solutions Corp. has delayed its annual salary increases for staff members until August, the second consecutive year that raises have been delayed by at least five months. This year, employees will begin receiving their updated pay on August 1st, although normally salary increases are given earlier. On the other hand, bonuses for qualified workers will begin to be distributed on March 10 according to a Mint report.
Why Cognizant Postponed salary hikes :
The delay is seen as an effort to reduce high employee turnover, and attrition, which has been a difficulties for Cognizant. In 2024, the company’s attrition rate rose to 15.9%, up from 13.8% in 2023. Other major IT companies like TCS, Infosys, and HCL Tech are also facing the same issues.
Cognizant’s CEO, S. Ravi Kumar, who joined in 2023 to help turn the company around, has been working to maintain the workforce. He mentioned that 13,000 former employees have returned to the company, which is a positive sign. Still, layoffs of 3,500 employees in 2023 and modest revenues growth in 2024 have included to the challenges.
Industry-Wide Trends :
The trend of delayed or smaller salary hikes isn’t particular to Cognizant. Other IT giants like Infosys, TCS, and HCL Tech are also offering modest increases, with some employees seeing increments as low as 1%-2%. In short, Cognizant’s delay in salary hikes shows wider company struggles with attrition and economical challenges, as companies aim to retain talent while managing costs.
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