Cognizant clarifies engineer salaries amid social media backlash
CHENNAI, INDIA — IT services provider Cognizant recently clarified its salary offerings for new hires in response to social media backlash.
The company confirmed that it provides competitive salaries ranging from ₹4 lakh to ₹12 lakh (US$4,700 to US$14,000) annually for fresh engineering graduates.
Surya Gummadi, EVP and President of Cognizant Americas, made this statement to address confusion over the widely discussed ₹2.52 lakh (US$3,000) annual salary, which applies only to non-engineering undergraduates.
Dual recruitment process explained
Cognizant operates two recruitment processes simultaneously: one for engineering graduates and another for non-engineering/information technology graduates. The ₹2.52 lakh (US$3,000) salary offer was specifically for candidates with three-year non-engineering degrees.
Gummadi explained, “Our recent job posting for talent from non-engineering backgrounds, with a 3-year undergraduate degree, has been grossly misrepresented.”
This approach underscores Cognizant’s strategy of offering tailored compensation based on educational background and role requirements.
Commitment to employee training
Cognizant also revealed that it is investing significantly in training and upskilling its workforce. The company allocates approximately ₹2 to ₹3 lakh (US$2,300 to US$3,500) per associate for both engineering and non-engineering associates to enhance their skills in advanced technologies.
Gummadi highlighted, “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.”
This investment reflects Cognizant’s dedication to nurturing talent and providing career advancement opportunities.
Competitive edge in the IT services industry
Cognizant’s salary range for fresh engineering graduates positions the company among the top in the industry, often surpassing competitors.
Gummadi stated, “The compensation we offer for engineering graduates is highly competitive within the IT services peer group.”
This competitive compensation package is part of Cognizant’s strategy to attract and retain top engineering talent and ensure its continued leadership in the rapidly evolving technology sector.
Performance-based salary increments
Addressing concerns about annual salary increments, Cognizant clarified that these range from 1% to 5%, based on individual performance. Despite criticism of offering as low as a 1% hike, the company emphasized that this is the lower end of a broader performance-based reward system.
Gummadi explained, “This recent pay hike is the 4th that most Cognizant’s associates have received in the past 3 years.” These increments, along with bonuses, are part of a comprehensive total rewards package designed to maintain competitive compensation within the industry.
