In an official email to employees, Accenture, the IT firm has communicated that there will be no salary increments for its Indian and Sri Lankan workforce in 2023. The decision coincides with the challenges faced by the IT sector and Accenture’s growth having fallen short of its original projections.
This update was conveyed to the employees by Ajay Vij, managing director, Accenture India.
The email indicated that individual performance bonuses will also be awarded based on contributions, although they will be considerably less than the previous year. Moreover, the company is curtailing promotions.
Promotions up to the associate director level (Level 5) will proceed as planned in December but at a reduced frequency compared to the previous year. Promotions for levels 1 through 4 have been postponed until June 2024 to align with the company’s growth objectives.
The mail also clarified that Accenture’s compensation strategy aims to offer competitive pay based on skills and location while maintaining affordability for the company. As a result, the company will not provide base salary increases this year, except where legally mandated or in specific areas of critical expertise.
In March 2023, the company announced its intentions to let go of 19,000 employees through the year. The mail explained that the company encountered a macroeconomic setting that proved to be tougher than what was initially expected at the commencement of the FY23 fiscal year, resulting in lower growth than initially projected. The IT giant, which operates on a September-August financial year cycle, presented a set of financial results with mixed performance in the last quarter, and its FY24 outlook was the second least optimistic among the yearly forecasts provided in the past 16 years.
Currently, Accenture employs more than 3,00,000 professionals in India