Shocking Blow to Freshers: Cognizant Announces Mere 1% Salary Hikes Following 2002 Pay Package Disappointment
Cognizant Faces Backlash Over Minimal Salary Hikes and Low Starting Pay
Cognizant Technology Solutions, an IT industry giant, is facing significant criticism for its recent compensation policies. Despite reporting a quarterly profit increase, the company has announced minimal salary hikes and historically low starting salaries for fresh graduates, sparking widespread discontent.
According to Economic Times, some Cognizant employees received annual salary hikes as low as 1%, with the highest increases capped at 5%. This marks a stark decline from the previous year’s increments, which ranged from 7-11%. The company implemented these raises after a four-month deferral. Employees with performance ratings of 3 saw hikes between 1% and 3%, while those rated 4 and 5 received increases of 4% and up to 5%.
Cognizant, headquartered in the US, has around 70% of its 254,000-strong workforce based in India. However, the company reported a decline in total headcount by 8,100 to 336,300 during the last quarter. Year-on-year, this figure is lower by 9,300 employees. For the quarter ending in June, Cognizant posted a 22.2% year-on-year rise in net profit, reaching $566 million, although revenue slightly decreased by 0.7% to $4.85 billion.
The company’s recent announcement of starting salaries for freshers at Rs 2.52 lakh per annum has exacerbated the controversy. This compensation level is reminiscent of salaries from two decades ago, specifically the starting salary of 2002. The decision has ignited outrage on social media and raised concerns regarding Cognizant’s future talent acquisition strategies. The Rs 2.5-lakh package is targeted at 2024 graduates from any three-year full-time degree programs.
These developments have prompted serious discussions about Cognizant’s commitment to fair employee compensation and the potential impact on its attractiveness to future talent.
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Original Story https://timesofindia.indiatimes.com/technology/tech-news/after-2002-pay-package-for-freshers-heres-another-salary-low-from-cognizant-1-salary-hikes/articleshow/112551572.cms
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