At a time when the whole world is trying to come out from the sizer and grip of covid-19, the announcement of the Cognizant employee bonus is quite surprising.
With a sweetener of an announcement, Cognizant has decided to reward its employees with bonus payouts, promotions, and merit raises. The New Jersey-based giant, home to 2.89 lakh employees, has claimed to offer employee bonuses above the level of company performance and markedly higher than in 2019.
The Cognizant employee bonus, offered after a pandemic-hit 2020, is to recognise the stellar professionalism and work ethic shown by the Cognizant employees, as Rajesh Nambiar – Cognizant India Chairman and Managing Director, put out in a statement.
As a part of the announced employee bonus, the company is seeking to award 1.6 lakh employees with merit increases around the globe. More than 24,000 employees have already been promoted following the announcement.
Additionally, the company is also in the works to move to a quarterly promotion cycle for billable employees at the Senior Associate level and below, expectedly to commence in Q2 of 2021, according to Nambiar.
It should be noted that more than 75% of the Cognizant workforce is based in India, boasting a number of 2, 04,500.
Despite seeing to inject a heady dose of positivity in the move, the decision comes at a time when the company’s attrition rate has increased. The US-based IT major saw its quarterly annualized voluntary attrition rate go up from 10% to 16%, and the total quarterly annualized attrition rate went up from 18% to 19% in 2020.
Under the leadership of Brian Humphries, the new CEO at the helm, who joined in 2019, Cognizant has been pivoting towards undertaking major restructuring, including cutting off some businesses.
It is indeed a delicate time for the company, as Cognizant’s yearly income also tumbled down a considerable 24% to $1.39 billion in 2020 from $1.84 billion in 2019. Cognizant follows the calendar year, with its fourth-quarter ending in December. It also reported a 2.3% decline in annual revenue to $4.18 billion from $4.28 billion a year previous.
This was in stark contrast to a few years back when Cognizant was lodging double-digit growth numbers, while its counterparts Infosys, TCS, and the like took a circumspect approach just to sustain after the global economic slowdown. However, recent times have seen Cognizant’s numbers slump.
Clearly attempting to wrest back initiative with an announcement like an employee bonus, Cognizant is leaving no stone unturned in both – keeping hold of clients and skilled manpower. To increase the company’s revenue growth, Cognizant has also increased the workday for its Indian workforce to 9 hours from the previous 8 hours. Concurrently, increasing the number of paid leaves for employees to 36, the company has also set up a $30 million fund to hook top performers and digitally skilled employees.
The employee bonus announcement, even as it comes with some serious undercurrents, will no doubt further the status of Cognizant. The company is crowned as a Top Employer for 2021 in 17 countries globally by the Top Employers Institute, an authority that recognizes excellence in people practices in the workplace.
With brownie points in the bag here, Cognizant will keep striving to get itself back on track. Undoubtedly, the Cognizant employee bonus is a much-needed booster for employees who are trying to get back on their performance streak after getting hit hard by Covid-19.
Stay tuned for more updates.