Cognizant rolls out bonus, promotions, and wage hikes for employees
According to media reports, Cognizant the US-based IT company is declaring to roll-out salary hikes for 1.6 lakh employees and promoted 24,000 employees globally. The move aimed at curtailing staff attrition, which had seen 3,000 leaving the company in 2020.
Rajesh Nambiar, Chairman & Managing Director, Cognizant India said. “We are rewarding about 160,000 employees with merit increases globally and have promoted more than 24,000 employees across every level,”
To reward employees in a more timely manner for their hard work and high performance, the company was moving to a quarterly promotion cycle for billable employees at the senior associate level and below from the second quarter of the calendar year 2021, he added.
Additionally, the American multinational has also announced the bonus to its employees in 2020 higher than that of last year despite the challenging year.
The company employs about 2.8 lakh employees, a majority of them in India. Cognizant is the second IT company after Tata Consultancy Services Ltd (TCS) to employ more than 2 lakh staff in India.
Cognizant has reported the highest attrition rate 19 % in December ending quarter (Q4), and the company has put up a $30 million budget to improve its employee retention.
The IT firm has reported annual attrition of 18% in Q3 ending on September 30, 2020. The rate is highest among all IT service firms.
The company expects the growth momentum to continue in 2021 and has robust hiring plans. Cognizant announced to hire company will hire 23,000 freshers in this years
The company reported a 20 per cent drop in net profit to $316 million in the fourth quarter ended December 2020, against $395 million in the same period last year. The company follows a calendar year.