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. “For the fourth quarter in a row the attrition declined for us. It was a 1,000-basis point reduction and we are thrilled by this,” Rajesh Nambiar, Chairman and Managing Director, Cognizant India, told businessline. At the end of the fourth quarter, Cognizant had 355,300 employees — an increase of 5,900 from Q3 2022 and an increase of 24,700 from Q4 2021.
Nambiar attributed the reduction in attrition numbers to three major initiatives that the company took in the last one-and-half years. The first was Internal Job Moves. The company created this programme 18 months ago and it helped in the last four quarters. In IJM, instead of employees applying outside, and wanting to do something bigger or challenging opportunities, or work on new technologies, the company provided these within the company.
For example, if an employee is today working on C++ and tomorrow wants to work on a different technology or wants to get promoted and had been in the same role but capable of doing a bigger job, the employee can do this within Cognizant rather than going to the competitor. “This has worked wonders for us. We have already done around 39,000 promotions within the IJM umbrella. We also do outside of that. The IJM is creating momentum and building a long-term career for employees with us,” he said.
The second is the amount of money invested in learning and development, which is a critical component in the IT industry. Employees need to be equipped with new age and digital capabilities. “We invest a lot more on L&D than many of our competitors,” he said.
The third element is enhanced compensation and benefits. Last year, the company spent lots of money on this, he said without giving any numbers. “We are also doing two merit cycles in a space of six months for most of our associates. This is a one-time occurrence. That’s a huge uplift for our employees. There should not be any more complaints about compensation or benefits,” he said.