Cognizant’s CEO Ravi Kumar said that more than 3,00,000 employees will get imminent salary hikes. The company gave an appraisal six months earlier in the year.
The development comes days after Cognizant’s chief people officer, Rebecca Schmitt resigned from her office. She will be leaving Cognizant effective May 5.
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Ravi Kumar, wrote in an internal note, “This week, 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.”
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Kumar added, “Combined with the merit increases to eligible directors and above received in January, Cognizant is awarding more than 300,000 associates a merit increase this year. Over the past couple of years, we’ve invested significantly more in compensation than we have recently because of how valuable you, our associates, are to Cognizant’s success.”
Aditya Mishra, MD and CEO of CIEL HR, said, “Normally companies come out to offer these kind of largesse when they want to reduce attrition. Attrition that was high in the Indian IT sector is gradually stabilising.”