33% Cognizant Employees Resigned In 90 Days! 35,000 New Employees Hired

Among IT services majors, the American IT service provider, Cognizant reported the highest attrition of 33%.

This seems to have prompted the CEO Brian Humphries to allocate higher bonuses to employees to retain amid the war for talent across the tech industry.

More Bonus For Cognizant Employees

Coming to other peers, attrition stood close to 20% for Infosys, Wipro and Tech Mahindra.

On the other hand, TCS and HCL reported 11.9% and 15.7% attrition respectively, in the September ending quarter.

Further, Humphries said that the company is creating 2020 bonuses at higher levels than 2019.

Along with that it also plans to implement targeted merit increases and promotions in the fourth quarter.

According to him, this move will hurt the cost structure in 2020 versus the prior year.

But, it is an essential and normalized part of the cost structure in the services business.

Double-Digit Revenue Growth

Compared to the previous quarter this number has come down when the number was at 37%.

Humphries said, “We’re investing meaningfully in the business, probably even more than I anticipated a year ago because the more I’m here, the more I see opportunities. In talent overall, in the talent management system, we’re accruing bonuses at higher levels. We’re getting back to merit-based promotions and raises,”.

Coming to revenue growth, Cognizant reported double-digit revenue growth of nearly 12% year-over-year.

The IT major has delivered $4.7 billion in the third quarter with all segments growing to plan and executing against its transformation strategy. 

More Employees With New Hiring

In the third quarter, Cognizant’s global headcount stood at 318,400, which is among the highest levels ever. 

During the same time, the hiring engine brought on over 17,000 net new hires.

Now, the company has grown its headcount by over 35,000 people since this time last year.

According to Humphries, digital talent is “constrained” and therefore an “expensive asset” which was why Cognizant was looking to attract digital talent. 

He added, “In the last six months, we have overhauled our talent management and annual performance evaluation processes, which allow us to develop a diverse, inclusive, and high-performance team,”.