Employees of Cognizant Technology Solutions have a lot to cheer for now. An e-mail from the company's Chief Financial Officer, Mr Gordon Coburn, and the Chief People Officer, Mr Shankar Srinivasan, has assured them, this year, of ‘significantly higher levels of bonus,' ‘accelerated promotion and pay-revision cycles' and, the taking care of ‘2006 and prior campus batches' currently with the company. The e-mail, a copy of which is with Business Line, says it has arrived at these measures “based on a careful assessment of the performance of Cognizant, input from our clients in terms of their plans and our review of the talent market in various geographies around the globe.” Typically for large industry players, if confidence stems from “clients' plans”, then a better year ahead is expected. Given Infosys' and TCS' upbeat performance for the December 2009 quarter, with the former saying that the ‘worst is behind us', Cognizant too could be seeing greener pastures ahead. The e-mail touches upon the company's ‘associate reward and recognition plans for 2010' across four fronts. Bonus The bonus payouts for the year 2009 are planned for distribution in March this year at levels ‘significantly above recent years'. While details are not available as to how much was paid out last year, industry watchers say that across the industry, bonus payouts could, in good times, exceed 100 per cent. (For instance, if your salary is Rs 100 and the variable component of your salary is Rs 30, then your variable pay could be anywhere between Rs 0 in a bad year to Rs 30 in a good year. In boom time, variable pay has exceeded 150 per cent in some companies in the industry.) Promotion This year, Cognizant aims to give promotions effective across May and July. Typically this used to be effective July. For employees currently at designation below Manager, Cognizant would announce promotions in late April, effective May 1. It would also conduct an additional promotion round for this group in late 2010. For Managers and above, it would announce promotions in June, effective July 1. Interestingly, the e-mail says, “We expect to promote a substantially larger number of people than last year.” Compensation The company has also committed to an accelerated company-wide pay revision cycle that would become effective at the same time as promotion cycles in May and July. For now, no further details are available and the e-mail only says, “We will conduct market analyses to determine the scale of the revisions, taking into account overall market conditions, our revenue plans, and our clients' spending patterns.” The company also has a word for those who joined it in 2006 and prior batches, currently at Programmer (P) and Programmer Analyst (PA) levels. For programmers It recognises that, “given the global economic turmoil and our slower growth over the past few years… many in this group were disproportionally impacted.” Hence Cognizant is planning a separate, off-cycle salary increment process for the India-based portion of this population with an effective date of January 1, 2010. This initiative will occur in February once the 2009 performance ratings are finalised, it says. “In addition, a substantial number of P and PA promotions will be announced in April and will be made effective May 1 {+t},” the e-mail says.
Courtesy: The Hindu Business Line |