Coforge’s expansion has been propelled by a series of acquisitions, stretching from the Philippines to Canada and the United States. With each new acquisition, the firm widened its portfolio and scaled its operations. But as with any acquisition, the promise of growth was tempered by the challenge of cultural integration.
Blending different work styles, hierarchies, and corporate identities while maintaining the distinctiveness of the acquired companies was no small feat. Employees on both sides needed to feel secure and valued to avoid the risk of disengagement, confusion, or worse—attrition.
This focus on early communication materialised in frequent town halls, sometimes numbering as many as 30. In these sessions, employees could raise concerns about key issues—compensation, performance appraisals, or even commitments made by previous management. This transparency was critical, offering reassurance and building trust well before day one.
“Pre-acquisition communication was crucial in setting the tone and expectations. This began with conversations between the leaders of the acquired companies and Coforge’s leadership to ensure that the acquired employees felt valued and understood.”
Pankaj Khanna, chief people officer, Coforge
To smooth this process, many senior employees from acquired firms were given leadership roles within Coforge, ensuring continuity and reducing cultural clashes. This strategy paid off handsomely, with the company retaining over 90 per cent of senior executives from acquired firms—far above the industry average.
“We emphasised leadership continuity by retaining key senior figures from the acquired companies, which helped maintain stability and address concerns about leadership style changes,” says Khanna.
A swift harmonisation of compensation structures, recognition programs, and celebrations proved crucial in reinforcing a sense of unity. By aligning salary bands and recognition platforms, Coforge reduced disparities and fostered a sense of equality. This was particularly important for junior employees, for whom differences in pay and recognition could quickly lead to disengagement.
“When employees saw that their peers were in the same system, with the same band and recognition structure, it reduced the feeling of inequality,” explains Khanna. This standardisation across the board helped smooth cultural alignment and prevent potential friction during the integration process.
To further streamline integration, Coforge formed dedicated teams, including members from HR, finance, and other key departments. These teams oversaw the transition, ensuring that both people and processes adapted seamlessly to the new organisational structure. Transparency and inclusivity were prioritised, giving employees ample opportunities to voice concerns and actively engage with the new corporate environment.
This openness extended to fostering inter-company relationships, as Coforge set up engagement platforms that encouraged collaboration between its employees and those from acquired firms. These initiatives, paired with an inclusive culture, helped ease any initial discomfort or barriers.
Cultural clashes, however, were inevitable. Employees from regions as diverse as the Philippines and Canada brought with them distinct work styles, making it essential for Coforge to approach these differences with sensitivity. Here again, leadership continuity played a critical role. By retaining senior leaders from acquired firms, Coforge ensured a smoother cultural transition.
Training programs were also deployed to bridge gaps, focusing on Coforge’s core values, leadership expectations, and long-term vision.
While competitive compensation was a cornerstone of employee retention, Coforge understood that retaining top talent required more than just attractive pay. “It’s essential to present a clear career path, as individuals at all levels seek to understand their future prospects within the company,” says Khanna. Regular communication, coupled with thoughtful role allocation, helped retain critical employees during the post-acquisition phase.
Even during challenging periods, such as the COVID-19 pandemic, Coforge’s agile approach—maintaining a flat, accessible leadership structure—helped it sustain a remarkably the industry lowest attrition rate of 11.4 per cent. Senior leaders, including the CEO, make concerted efforts to personally engage with employees, fostering a sense of belonging and encouraging career mobility within the organisation.
Coforge claims its employee-satisfaction scores consistently exceed 80 per cent, even among acquired companies—a figure well above the industry norm. These numbers reflect the company’s commitment to employee engagement and retention, hallmarks of a firm that, despite its size, operates with the nimbleness and human touch of a smaller enterprise.
“Our employee-satisfaction scores consistently exceed 80 per cent, even among acquired companies. This is significantly higher than the industry average,” concludes Khanna.
