Following the economic impact of COVID-19 on the business, Cognizant Technology Solutions has offered its benched employees a voluntary separation package. These employees, who are currently not involved in any client projects or are ‘idle’ will have the option to take this package that includes cash as well as health benefits, such as long-term insurance policies.
The offer has been made to only the employees of Cognizant in the US at present, who take home high salaries. It is reported that the Company may think of offering similar packages to employees in other locations across the world, including India, although there is no official confirmation of the same.
While the Company has been taking all possible measures to protect its employees from the impact of the pandemic on the business, certain clients have demanded that employees be furloughed. Some clients have been asking for discounts, while others have pulled back spending. This has resulted in employees on the bench facing the brunt, as it has now become essential for the business to utilise the workforce efficiently and align spending with revenue.
The benched employees will have to take the hit, because they are not working on projects right now, and will probably not have further work coming their way anytime soon.
The situation has forced Cognizant to work on its bench policy, by offering extra cash to the impacted employees along with long-term health benefits. By making the offer voluntary, the Company has tried to present the employees with a fair and dignified option to leave.