Cognizant Defers Annual Salary Hikes by Over 5 Months for 2nd Time in a Row
In a move that is likely to have a significant impact on its employees, Cognizant, a leading IT services company, has announced that it will be defer its annual salary hikes by over 5 months for the second time in a row. The company will now give annual salary hikes to its employees from August this year, marking the second time it has postponed salary hikes by five months.
Under the new CEO Ravi Kumar, Cognizant has deviated from its traditional practice of giving both salary hikes and bonuses in March. Instead, the company will be giving bonuses to its employees in March, while the salary hikes will be given in August.
The decision to defer salary hikes is likely to have a significant impact on Cognizant’s employees, who are already facing a challenging job market. The company’s decision to delay salary hikes may also have a knock-on effect on the overall salary structure of the industry, as other companies may also consider deferring salary hikes in response to the changing economic conditions.
Cognizant’s decision to defer salary hikes is not surprising, given the current economic conditions. The company’s revenue growth has been slowing down in recent quarters, and the global economy is facing a number of challenges, including the ongoing trade tensions between the US and China, and the impact of the COVID-19 pandemic on global trade.
Despite these challenges, Cognizant has continued to invest in its employees, and has implemented a number of initiatives to support their development and growth. The company’s decision to defer salary hikes is likely to be seen as a pragmatic response to the current economic conditions, rather than a reflection of a lack of confidence in its employees.
Cognizant’s decision to defer salary hikes is also likely to have a significant impact on the company’s bottom line. The company’s revenue growth has been slowing down in recent quarters, and the deferral of salary hikes will help to reduce the company’s expenses and improve its profitability.
In conclusion, Cognizant’s decision to defer annual salary hikes by over 5 months for the second time in a row is a significant development for the company and its employees. While the decision may have a short-term impact on employee morale, it is likely to be seen as a pragmatic response to the current economic conditions. The company’s decision to defer salary hikes is a sign of its commitment to its employees, and its willingness to take a long-term view of its business.
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