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Many Cognizant employees will see a third merit increase in the 18 months, according to an internal note issued by the company’s CEO S Ravi Kumar. Over 3 lakh associates globally will receive a merit increase in 2023, he said in an internal note to employees.
At the end of the fourth quarter, Cognizant Technology Solutions had 355,300 employees — an increase of 5,900 from Q3 2022 and an increase of 24,700 from Q4 2021.
Announcing the annual financial results in February, the company said that it was rolling out two merit cycles in a space of six months for most of its associates. This was a one-time occurrence to ‘uplift’ its employees.
The company neither disclosed the number of people getting the third merit increase nor the total outlay for the merit increase.
The latest merit increase is seen as a measure to arrest attrition as the IT industry is facing headwinds due to global macro economic issues.
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“The vast majority of you who are in levels up to Associate Director will receive your 2023 merit pay eLetters. Keep in mind that we advanced this merit increase to be six months earlier in the year, following year-end performance reviews. This means many of you are seeing your third merit increase in 18 months,” said the note.
“Your compensation is an essential part of your Total Rewards, along with the benefits, wellbeing resources, learning opportunities, and other support we provide to help you and your families thrive. That’s why our company has worked diligently to be more consistent, reliable, and competitive in the compensation we offer for the value you provide to our clients, colleagues, and communities,” he said.
The quarterly annualised employee attrition for Cognizant Technology Solutions declined for three months ended December 2022 to 19 per cent from 29 per cent in Q3 of 2022 and 31 per cent in Q4 2021. The attrition declined for the company for the fourth quarter in a row.
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