Once more, Cognisant Technology Solutions Corp. has pushed back salary increases, this time to August 2025. For workers who usually get their raises in March, this is the second delay in more than five months.
Key Announcements from CEO S Ravi Kumar
- There will be a pay rise on August 1, 2025, instead of March.
- Bonuses: They will be given out in March, and managers will let workers know by March 11.
- Higher rates of voluntary leaving: In 2024, voluntary leaving hit 15.9%, higher than at TCS (13%), Infosys (13.7%), and HCLTech (13.2%).
Why the Delay?
Like every year, Cognisant offers both pay raises and bonuses in March. But because CEO Ravi Kumar is in charge, the business has decided to pay bonuses in March instead of raising wages until August.
- The last rise in pay, which was between 1% and 5%, happened in August 2024.
- The rising turnover rate suggests that workers may be leaving because they don’t like how pay is structured or that raises are taking too long to happen.
Impact on Employees and Industry Comparison
With 15.9% of Cognisant employees leaving on their own, worries about keeping employees are rising. It has to deal with competition from firms like TCS, Infosys, and HCLTech that offer more stable pay periods.
- In March 2025, TCS aims to give a rise of 4% to 8% on average.
- This year, Infosys employees got an average rise of 5% to 7%.
- It was said that HCLTech gave 1% to 2% raises in FY25.
- Because of their hard work, Wipro employees got bigger raises in September 2024.
Since Cognisant has a history of delaying pay raises, workers may look for other jobs, which would put even more pressure on the company’s HR policies.
What’s Next?
To keep from losing more good employees, Cognisant might need to look at how it pays its workers. Since pay raises aren’t due until August 2025, the next few months will be very important for keeping employees happy and motivated.
Also Read:
- Reliance New Energy Faces Battery Cell Plant Penalty: A Setback for India’s Green Energy Push?
- Infosys Announces Salary Hikes for 2025: Lower Increments Disappoint Employees
Efforts to Stop Talent Exodus
Reports say that putting off pay raises could be an effort to stop the rising rate of employee turnover. In its Tech Services section, the number of people leaving on their own rose from 13.8% in December 2023 to 15.9% in Q4 2024.
- As of December 31, 2024, there were 336,800 workers.
- CEO Ravi Kumar said that 13,000 former workers have come back to work for Cognisant.
- In 2024, Cognizant’s sales rose 1.98% to $19.74 billion, mostly because it bought companies like Thirdera and Belcan. But if you take out the purchases, the company’s main business actually went down.
Conclusion
The frequent delays in Cognizant’s price hikes could make workers unhappy and make it harder to keep them for a long time. As the company deals with these problems, it remains to be seen if the raises in August 2025 will be enough to win back the trust of employees.
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