Cognizant Technology Solutions Corp. has once again postponed the salary hikes and will now implement it in August this year, according to a report by Mint. This is reportedly the second time the company has postponed salary hikes in over five months.
During a town hall at the company’s newly renovated Kolkata office on Thursday, Cognizant CEO S Ravi Kumar announced that salary hikes would begin on August 1, while bonuses for eligible employees would be distributed in March, the report stated. The company also instructed managers to communicate bonus details to their teams by March 11.
ALSO READL&T secures large orders in India and abroad for its Power Transmission & Distribution vertical
Normally, Cognizant distributes both hikes and bonuses in March, but under CEO Ravi Kumar’s leadership, bonuses are paid in March while hikes are deferred to August. The company’s last salary increases, ranging from 1% to 5%, were given in August of the previous year.
The early announcement of the salary hike this year may be an effort to address rising attrition rates. In the tech services division, which represents the majority of the workforce, voluntary attrition climbed to 15.9% by the end of 2024, up from 13.8% the previous year, Mint reported. Attrition refers to employees voluntarily leaving the company.
As of December 2024, Cognizant’s voluntary attrition rate surpassed that of competitors like Tata Consultancy Services Ltd (13%), Infosys Ltd (13.7%) and HCL Technologies Ltd (13.2%) in the past 12 months. It’s worth noting that TCS and Infosys’ figures include attrition in their IT services arms, while HCLTech’s data excludes digital process automation, the report stated.
» Read More
