Cognizant Still Undecided on Salary Hike of Eligible Employees
The ongoing uncertainty in the global economy has cast a shadow over the tech industry once again. The latest to join the list of companies delaying employee salary hikes is Cognizant, a leading IT services provider. In a recent earnings call, the company’s Chief Financial Officer (CFO), Jatin Dalal, confirmed that Cognizant is still undecided on salary hikes for its eligible employees.
This shift marks a departure from the company’s traditional March hike cycle, which has now been deferred twice under the leadership of CEO Ravi Kumar. The news has sent ripples of concern among Cognizant’s employees, who were expecting a salary increase after a year of hard work. The delay is likely to impact the morale of employees, who have been dealing with a challenging work environment and rising expectations.
Cognizant is not the first company to delay salary hikes in response to macroeconomic uncertainty. Several other tech giants, including Infosys and Wipro, have also put their hike cycles on hold or delayed them in recent months. The uncertainty surrounding the global economy, fueled by factors such as trade wars, Brexit, and the COVID-19 pandemic, has created a challenging environment for companies to operate in.
The IT industry, in particular, has been impacted by the shift in global economic trends. The sector has traditionally been driven by demand from the US and European markets, which have been experiencing a slowdown in recent times. The impact of this slowdown has been felt across the industry, with companies struggling to maintain their growth momentum.
In the face of this uncertainty, Cognizant’s decision to delay salary hikes is not surprising. The company has been taking a cautious approach to its cost management, which includes a freeze on hiring and a reduction in discretionary spending. The delay in salary hikes is likely a temporary measure aimed at preserving cash and maintaining the company’s financial stability.
However, the delay is also likely to have a long-term impact on employee morale and retention. Employees who were expecting a salary increase may feel undervalued and unmotivated, leading to a potential exodus of talent from the company. In a competitive market like the tech industry, retaining top talent is crucial for companies to remain competitive.
The delay in salary hikes also raises questions about Cognizant’s commitment to employee welfare. The company has traditionally been known for its employee-friendly policies, including a strong focus on employee development and well-being. However, the delay in salary hikes may be seen as a betrayal of trust by employees who were expecting a reward for their hard work.
In conclusion, Cognizant’s decision to delay salary hikes for its eligible employees is a reflection of the uncertainty surrounding the global economy. While the company’s cautious approach to cost management is understandable, the delay may have long-term consequences for employee morale and retention. As the industry navigates these challenging times, it is essential for companies to prioritize their employees and maintain a culture of transparency and communication.
Source:
https://trak.in/stories/cognizant-still-undecided-on-salary-hike-of-eligible-employees/
