On Thursday, IT major Cognizant announced that it was rewarding its employees with merit raises, promotions as well as pay-outs. As compared to 2019, these bonuses are substantially higher, said the company. 2,04,500 of its total 2,89,500 employees are based in india.
Rajesh Nambiar, MD & Chairman of Cognizant India said that despite 2020 being a difficult year for the company, they have decided to reward its employees in recognition of the professionalism, client-centricity, work ethic and perseverance for serving the clients globally during such trying times. He said that the bonuses and rewards were substantially higher than 2019 and were above the level of company performance.
Globally, the company has decided to award 1.6 lakh employees with merit increases. Also 24,000 employees have been promoted.
Quarterly promotions
Mr. Nambiar added that starting Q2 2021, cognizant is moving to a quarterly promotion cycle for billable employees at the Senior Associate level and below in order to timely reward their employees for their hard work and performance.
He said that the company is heavily focused when it comes to the areas of employee motivation, engagement and empowerment so that they can do best work through careers they find meaningful. The intent is to maintain a competitive and appealing employee environment where every individual is inspired to achieve, driven to perform and is also rewarded as per their contributions.
Dip In Net Income, Revenue & Rise In Attrition
Down from $395 million year-on-year, the company’s net income saw a decline of 20% to $316 million. A year ago, the revenue of global technology leader declined 2.3% to $4.18 billion from $4.28 billion a year ago.
With its fourth quarter ending in December, company follows the calender year. From $1.84 billion in 2019, Cognizant’s yearly income was $1.39 billion in 2020, which is a decline of 24%
This move comes at the time when the attrition rate of company has increased substantially. Cognizant saw its quarterly annualised voluntary attrition go up from 10% to 16%, and quarterly annualised attrition up from 18% to 19%.
Reportedly, in order to retain top performers and digitally skilled employees, company has set up a $30 million fund.
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