Cognizant Celebrates As It Hands Out Its Third Rise In 18 Months To Nearly 3 Lakh Workers In The Midst Of A Layoff Frenzy.

Cognizant will increase compensation for staff up to the Associate Director level six months ahead of plan, making this the third such rise in 18 months. This comes as the corporation attempts to halt skyrocketing attrition numbers, which have been a source of concern for the company. In Q4FY22, voluntary attrition fell from 35% to 25%, with involuntary attrition remaining at 6%.

Chief Executive Officer Ravi Kumar S said in an email to staff that employees would receive their letters this week. Remember that the company pushed this merit rise by six months after year-end performance reports. This implies that many employees are receiving their third merit rise in 18 months. He went on to say that when combined with the raises provided to the folks in director roles and above in January, over 3 lakh individuals will benefit.

Cognizant is offering merit increases to over 300,000 associates this year, in addition to the merit increases qualified Directors and above got in January. They’ve spent much more in pay in recent years than they have in previous history because of how important you, the associates, are to Cognizant’s success. He also stated that the organisation would offer ongoing training, upskilling, and professional growth.

This event is considered part of the company’s one-time two-merit cycle rise, which was announced last year to staff. Previously, the corporation stated that team would receive raises in October 2022 and then again in April 2023. CFO Jan Siegmund told investors last quarter that the business was on its way to becoming a more appealing employer and that the labour market dynamic had also evolved.

Cognizant, which operates on a calendar year basis, acquired 5,900 people in Q4. As a result, voluntary attrition fell to 26% from 28% in Q4 2021 on a trailing twelve-month basis.

Sound financial records of Cognizant.

In addition, the business anticipates first-quarter sales of USD 4.71-USD 4.76 billion, a 1.5% to 2.5% fall, or a 1.0% to flat decline in constant currency. Ravi Kumar was named CEO in January of this year. He stated that his immediate priority is to create an environment for the company’s associates to flourish and to ensure that all 355,000 employees have a development attitude. In the December quarter, the firm recorded a 1.3% increase in revenues to USD 4.83 billion, up from USD 4.77 billion the previous year.

Another IT giant, TCS, will provide staff with 100% variable pay.

Tata Consultancy Services (TCS), India’s largest IT services business, said this week that it would pay yearly raises to staff beginning in April, with top achievers receiving 12-15% raises. It also stated that all qualified employees would get 100% variable pay for the year’s fourth quarter. TCS’ chief human resources officer, Milind Lakkad, said that wage modifications would normally occur, with top achievers receiving a 12-15 per cent rise. Lakkad also stated that the business would pay its colleagues the total variable compensation for the fiscal year.

The news comes only days after Rebecca Schmitt, Cognizant’s chief people officer, quit. Schmitt is expected to complete her tenure and leave the IT behemoth by May 5.

Conclusion.

At a time of stress when firms are laying off thousands of employees to save expenses, IT behemoth Cognizant is said to have congratulated its personnel. Meanwhile, Aditya Mishra, MD and CEO of CIEL HR stated that organisations often provide such generosity to their employees in order to prevent turnover. He noted that the high attrition rate in the Indian IT sector is progressively moderating. It seems that we can hope for something good in the upcoming chapters of 2023.