In the financial year 2021- 22, the Information Technology giant doled out promotions to to around 42000 of its staff members, and spent a huge sum (approximately in millions) on raising salaries. The New Jersey based company is said to have spent $130 million (more than Rs 1000 crore) this year for performance based and off cycle raises.
On October 17, Cognizant India began giving yearly pay hikes to its employees, coming head to head with rivals such as Tata Consultancy Services (TCS) and Wipro in sprawling out merit salary increases (MSI) regardless of the currently elevating macroeconomic headwinds and an unyielding labour market.
The software service promoted 13, 810 employees up to the position of associate director, and spent almost $36 million on the average increase of 14 per cent, in proactive merit, which came into effect from April 1 last year. Collectively, the employees are likely to see an increment of up to 10 per cent in their salaries this year.
According to a filing with the Ministry of Corporate Affairs available on the data platform Tofler, the aimed merit evaluation covered 34, 216 employees with an expenditure of $65 million, that will lead to an average increase of 12 per cent. The eligibility for merit promotions were based in the staff’s performance rating and the grade levels.
According to a report by Economic Times— last week, Cognizant sent formal e-letters to its employees and notified them that their upcoming salary packages would be out in the week to follow. The new increments will come into effect from this month for levels up to associate director.
In the meantime, Cognizant Technology Solutions India recorded a 14 per cent increase in its revenue, i.e., Rs 33,979 crore whereas its net profit reduced by 7 per cent, i.e., Rs 2996 crore. The results for the next quarter will be announced in early November by the company.
More about Cognizant India
An important global delivery centre of Cognizant Technology Solutions, Cognizant India plays a noteworthy part in business outsourcing services other than providing services such as consultation and IT related solutions. The company has its headquarters based in New Jersey, USA.
However, the Indian unit of the company deals with necessary operational services. Some of the notable industries that utilise its services are— Banking and Financial services, Life insurance, media and entertainment, Annuities and retirement, Retail and hospitality, Manufacturing and logistics, Healthcare and Telecommunications. Its primary objective is to provide solutions even to the most intricate business challenges of their clients.