New Delhi: IT major Cognizant handed out promotions to around 42,000 employees in financial year 2021-22, and spent millions on salary hikes. The New Jersey-headquartered software services firm spent $130 million (over Rs 1000 crore) in the year for merit-based and off-cycle increments.
Cognizant promoted 13,810 employees up to associate director levels, spending $36 million, an average increase of 14 per cent, in proactive merit effective April 1 last year. Moreover, the IT firm rolled out target merit assessment effective July last year.
The target merit assessment covered 34,216 employees with a spend of $65 million, an average increase of 12 per cent, ToI reported citing a filing with the Ministry of Corporate Affairs which is available on data platform Tofler.
Meanwhile, the company on October 17 started giving annual pay hikes to its staff, joining peers such as Tata Consultancy Services (TCS) and Wipro in rolling out merit salary increases (MSI) in the face of increasing macroeconomic headwinds and a tight labour market.
Last week, Cognizant conveyed to its employees that “formal eLetters” with the new salary package would be out through the week, with the hikes taking effect from October for levels up to associate director, according to a report in ET.
With this, Cognizant employees will see an average salary increase of up to 10 per cent this year.
Meanwhile, Cognizant Technology Solutions India reported a 14 per cent jump in its revenue to Rs 33,979 crore in the year while its net profit declined 7 per cent to Rs 2,996 crore. Cognizant is slated to announce its third quarter results early next month.
