Cognizant Gives 1% Salary Appraisal To Employees; Pays Rs 186 Crore Salary To CEO


Mohul Ghosh

Mohul Ghosh

Aug 18, 2024


Cognizant Technology Solutions, a major player in the IT services industry, has come under scrutiny for its recent handling of employee salary hikes. According to reports, the company has rolled out annual salary increases as low as 1% for some employees, with the highest hikes reaching just 5%. This development has been met with widespread criticism, particularly given the current economic climate and rising inflation rates.

Cognizant Gives 1% Salary Appraisal To Employees; Pays Rs 186 Crore Salary To CEO

Cognizant CEO: Ravi Kumar Singisetti had received Rs 186 crore salary last year.

Deferred Increments Add to Employee Frustrations

In addition to the minimal salary increases, Cognizant also deferred these increments by four months, further exacerbating employee concerns. The increments, initially expected earlier in the year, were delayed, with the company finally implementing them at much lower rates than anticipated. For employees rated with a performance score of 3, the salary increase ranged between 1-3%. Those with a rating of 4 received a 4% hike, while top performers with a rating of 5 were granted increments of only up to 5%.

This is a stark contrast to the previous year, where Cognizant provided salary hikes ranging from 7% to 11%. The significant reduction in salary increments has fueled discontent among employees, particularly as the company also faces criticism for offering starting salaries as low as ₹2.52 lakh per annum to freshers in its off-campus recruitment drive.

A Struggling Workforce Amidst Corporate Gains

Cognizant’s recent actions have raised questions about its financial management and employee welfare strategies. Despite the low salary hikes and headcount reduction, the company reported a 22.2% year-on-year increase in net profit, amounting to $566 million for the quarter ending in June 2024. The company’s total headcount decreased by 8,100, bringing the number of employees down to 336,300, with about 70% of them based in India.

The decision to offer minimal salary hikes and delay increments has sparked concerns about employee morale and retention. As the company navigates these challenges, it remains to be seen how Cognizant will address the growing dissatisfaction among its workforce. The situation underscores the broader tensions in the tech industry, where companies are balancing profitability with the need to maintain a motivated and satisfied workforce.


Mohul Ghosh
Mohul Ghosh
  • 1477 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online