Cognizant Salary Hike 2023: After Low Fresher Package, Tech Giant Now Offers Pay Hikes As Low as 1% After 4 Months Delay, Says Report
Cognizant Technology Solutions, already criticised for offering its lowest starting salaries in a decade, has recently rolled out its annual salary hikes, with increments as low as 1 per cent.
Mumbai, August 17: How low can salary hikes go in the tech industry? Cognizant Technology Solutions, already criticised for offering its lowest starting salaries in a decade, has recently rolled out its annual salary hikes, with increments as low as 1 per cent. As per a report, the company, which had delayed these hikes by four months, is now offering increases ranging from 1 per cent to 5 per cent, based on employee performance ratings. The delayed hikes and minimal increases have come under scrutiny, particularly given the company’s recent low starting salary offers for freshers.
As per an Economic Times report published on August 15, Cognizant's annual salary increments for 2023 have been significantly reduced compared to last year's figures. While employees in 2022 saw increases ranging from 7 per cent to 11 per cent, the current hikes range from only 1 per cent to 5 per cent. This sharp decline in salary adjustments highlights a notable departure from the more generous increases previously provided. Cognizant 2.52 LPA Salary Package Sparks Meme-Fest: Netizens Share Funny Memes After Off-Campus Mass Hiring Drive Notice Appears Online, Ask 'Kya Karenge Itni Dhanrashi Ka'.
The rating system used for determining the hikes has been described as having assigned increments based on performance ratings. For example, employees with a rating of 3 received increments between 1 per cent and 3 per cent, those with a rating of 4 were given a 4 per cent increase, and employees with a rating of 5 received increments ranging from 4.5 per cent to 5 per cent. This performance-based approach has been implemented to align salary adjustments with individual evaluations. ‘Come Back to Office or Get Fired’: After Many Reminders, Cognizant Warns Employees To Return to Office or Face Termination.
In the second quarter of 2023, a year-on-year net profit growth of 22.2 per cent was achieved by Cognizant, with the net profit reaching USD 566 million. Despite this profit increase, the company’s off-campus recruitment drive, which offered freshers a starting salary of INR 2.52 lakh per annum, has faced considerable criticism. The drive, aimed at attracting new talent, has been criticized for its low salary offer, further fueling discontent among current and prospective employees.
(The above story first appeared on LatestLY on Aug 17, 2024 07:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).