The five-month delay in Cognizant's salary increase to curb employee turnover sparks online reactions: "In what world is this acceptable?"
It is the second consecutive time that such a delay has occurred.
Cognizant employees in India will have to wait until August 2025 for their next salary increase. This delay in salary reviews is the second consecutive time it has happened in two years. The news was shared by CEO S. Ravi Kumar during a meeting at the Kolkata offices. Last year, the raise was also postponed, and only a 5% increase was offered in August.
According to an internal memo, eligible employees will start receiving their bonuses from March 10. Reports suggest that the delay in salary increases aims to control the high attrition rate within the company. In the last fiscal year, voluntary departures at Cognizant reached around 16%, compared to 13.8% at the end of December 2023. Despite this, the CEO mentioned that a group of former employees has returned to the firm, indicating that approximately 13,000 current workers have come back to Cognizant.
The decision to postpone raises has generated negative reactions online. Some users have pointed out that the CEO is the highest-paid in the country, questioning the logic behind the measure. Comments on social media reflect frustration and discontent with the company's salary policy, highlighting the apparent disconnect between executive decisions and employee well-being.