Cognizant Clears Air on Salary Discrepancies
Facing intense scrutiny on social media, IT giant Cognizant has addressed concerns regarding its salary offers to fresh graduates, clarifying the distinction between engineering and non-engineering roles. The company emphasized that its annual compensation packages for fresh engineering graduates range from Rs 4 lakh to Rs 12 lakh, refuting claims that it offers only Rs 2.52 lakh to new recruits.
Clarification on Salary Discrepancies
Cognizant’s response came after widespread criticism of an alleged Rs 2.52 lakh annual salary for freshers, which the company explained was misrepresented on social media. According to Surya Gummadi, Executive Vice President and President of Cognizant Americas, this lower salary band applies specifically to non-engineering graduates with a three-year undergraduate degree, not to engineering graduates.
“Our recent job posting for talent from non-engineering backgrounds, with a 3-year undergraduate degree, has been grossly misrepresented,” said Gummadi. “The compensation of Rs 2.52 lakh annually was for candidates with a 3-year undergraduate degree and not for engineering graduates.”
Gummadi further clarified that the company’s compensation packages for engineering graduates are competitive within the IT services industry, ranging from Rs 4 lakh to Rs 12 lakh annually, depending on the hiring category, skill set, and advanced certifications.
Cognizant’s hiring practices cover a broad range of roles, from engineering to non-engineering positions. The company annually recruits both fresh engineers and non-engineering graduates for various positions. The recruitment for non-engineering roles has gained significant attention, leading to the misinterpretation that Cognizant’s fresher salaries are universally low.
Investment in Employee Development
Cognizant hires non-engineering graduates for administrative and support roles, and the company invests significant time and resources in upgrading their skills. According to Gummadi, the firm spends approximately Rs 2 lakh to Rs 3 lakh per associate in training and mentoring, ensuring they are well-prepared to handle advanced technologies. This investment is consistent across both engineering and non-engineering hires.
“Hundreds of our associates, who joined us with a 3-year undergraduate degree, today hold key positions from manager to assistant vice president across the company,” Gummadi said, highlighting the long-term career growth opportunities available at Cognizant.
Addressing Salary Increments Criticism
Cognizant also faced social media ridicule over salary hikes as low as 1%, with critics questioning the company’s compensation strategy. The firm clarified that the 1% hike represents the lower end of a 1-5% increment range, which is based on individual performance.
“The merit increases for this cycle are tied to both individual performance and macro industry dynamics,” Cognizant explained. “This year, we are one of the few IT companies in India that have delivered increments and bonuses for employees.”
The company emphasized that this recent pay hike is the fourth that most Cognizant associates have received in the past three years. Moreover, these hikes are part of a comprehensive total rewards strategy, which includes various components beyond base salary.
Commitment to Employee Development
Gummadi reiterated Cognizant’s commitment to being a people-first company, with a strong focus on employee development and growth. With over 70% of its 336,000 global workforce based in India, Cognizant has invested heavily in training and upskilling its associates in advanced digital technologies.
“We continuously invest in training and upskilling our associates in advanced digital technologies, sponsor higher education, and leadership development programs with top institutions,” Gummadi stated. “This ensures our people are empowered to be at the forefront of innovation, learn the latest technologies, work with global clients, and accelerate their career growth.”
Cognizant’s investment in its workforce extends beyond training. The company has recently opened new centers in Bhubaneswar and Indore and expanded operations in Hyderabad to bring its offices closer to where associates live, reflecting its commitment to employee well-being and work-life balance.
“Today, as AI increasingly powers modern businesses, we are creating new pathways for talent to thrive in India’s technology industry,” Gummad said.
In conclusion, Cognizant has made significant efforts to clarify salary discrepancies and address criticisms regarding salary increments. The company’s commitment to employee development and growth opportunities highlights its dedication to fostering a positive work environment for its workforce.