Cognizant Responds To Salary Backlash With Clarification

IT services firm Cognizant clarified on Sunday that its recent job posting offering a Rs 2.52 lakh annual package has been 'grossly misrepresented'. This statement comes after social media backlash over the low salary for freshers.

"Our recent job posting for talent from non-engineering backgrounds, with a 3-year undergraduate degree has been grossly misrepresented. This job posting, with compensation of Rs 2.52 lakh annually was only for candidates with a 3-year undergraduate degree and not for engineering graduates," said Surya Gummadi, EVP and President, Cognizant Americas.

Compensation Details

The company stated that fresh engineering graduates receive annual compensation ranging from Rs 4 lakh to Rs 12 lakh. This variation depends on the hiring category, skill set, and advanced industry certifications.

Cognizant emphasised that its pay for engineering graduates is competitive within the IT services sector. The firm also invests Rs 2 to 3 lakh per associate in training and upskilling during the initial years for both engineering and non-engineering hires.

Training Investments

"The compensation we offer for engineering graduates is highly competitive within the IT services peer group. Further, when we hire for entry level roles, we invest approximately R2 to 3 lakh per associate in the initial years to train, mentor and upskill in advanced technologies. This is for both engineering and non-engineering associates. 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 explained.

Merit Increases

The company is also addressing criticism regarding low salary hikes. Cognizant noted that merit increases are linked to individual performance and broader industry trends. "The merit increases for this cycle are tied to both individual performance and macro industry dynamics...This recent pay hike is the 4th that most Cognizant's associates have received in the past 3 years," stated the company.

Cognizant's clarification aims to address concerns about their compensation practices and highlight their commitment to competitive salaries and employee development.