According to Timesnownews, IT major, Cognizant India has spent $130 million (over Rs 1000 crore) in the year for merit-based and off-cycle increments.
Cognizant conveyed to its employees that “formal eLetters” with the new salary with the hikes taking effect from October for levels up to the associate director.
The company had rolled out a target merit assessment effective July last year and promoted nearly 42,000 employees in the financial year 2021-22.
The company had promotions in the following manner:-
- Cognizant promoted 13,810 employees up to associate director levels an average increase of 14 percent and spent $36 million in proactive merit effective April 1 last year.
- The target merit assessment covered 34,216 employees an average increase of 12 percent with a spend of $65 million.
Earlier, Cognizant froze the off-campus hiring for the freshers. The company has communicated this through an email to the applicants. The company was hiring fresher candidates from batches 2020, 2021 & 2022.
The actual reason is that Cognizant has a volatile environment for GenC (Generation Cognizant), which refers to entry-level candidates in the company.
As per the mail sent to the applicants saying, “Currently, our demand for freshers (GenC) in the organization is highly volatile.”
“For this reason, we are not proceeding further with the recruitment process now,” the mail added.
Most recently, Cognizant India reported 6 percent involuntary attrition in the September ending quarter of FY22, which also includes the sacking of employees due to failed background checks.
The involuntary attrition can be thought of as a euphemism for sacking. Cognizant India Head Rajesh Nambiar said that few employees are sacked due to failed background checks and 6 percent involuntary attrition in the quarter that ended September 30, 2022, also included it.
Cognizant total number of employees stood at 3,49,400 after adding 8,100 employees during the quarter under review.
Its India headcount now stands at 2,55,000 associates, up approximately 12 percent on-year. For the third quarter (Q3) of the CY22 July-September period, the company reported attrition levels of 29 percent.
