Cognizant, a leading global IT services provider, has pushed back its annual salary increases for this year by four months. The latest salary raise will be implemented in August, which were last granted in April.
The delay aligns with a period of subdued demand in the software services industry, attributed to budget constraints among clients amidst macroeconomic uncertainties. However, the company expressed its commitment to recognise its employees’ efforts through merit increases and bonuses.
The company highlighted that the majority of associates have received four merit increases within three years, with the most recent cycle in April 2023. The company also underscored its consistency in acknowledging employee contributions by recently awarding annual bonuses globally.
Headquartered in Teaneck, Cognizant boasts a global workforce exceeding 3.4 lakh employees, with around 2.54 lakh based in India.
Recently, in February 2024, Cognizant initiated a policy for its employees in India to work from the office three times a week. In a memo, the company encouraged its employees to return to office and benefit from working in collaboration with co-workers and focus on team-building, training and other activities.
It is pertinent to mention here that last year, when most companies had begun to aggressively call their employees back to office, Cognizant was focusing on reducing real-estate costs. The company had not mandated a return-to-office for its employees then.
Although the company had admitted that new entrants would require guidance, it had also acknowledged the fact that it would not be as effective with the managers and team leads physically absent.
