New Delhi: As India recovers from the effects of the Coronavirus pandemic, here is some good news to make your day. IT service major Cognizant is planning to give massive bonuses to its employees, along with promoting over 24,000 workers across various posts. Further, the company is also moving to a quarterly promotion cycle for billable employees at the senior associate level and below, starting in the June quarter of 2021.Also Read - Your Salary Hike This Year May Not Lead to Increase in Take-Home Pay| Here’s Why
“In order to reward our employees in a more timely manner for their hard work and high performance, we are moving to a quarterly promotion cycle for billable employees at the Senior Associate level and below, starting in Q2 2021,” a statement by the company read. Cognizant India Chairman and Managing Director Rajesh Nambiar said that they are rewarding bonuses above the level of company performance and substantially higher than 2019 to help their clients during this protracted pandemic.
Korn Ferry Survey
India Inc is planning to give an average salary hike of 7.9 per cent to employees in 2021 against 6.9 per cent given in 2020, Economic Times quoted a survey by global organisational consulting firm Korn Ferry as saying. The survey said that 78 per cent of the organisations covered are planning to give increments this year. Notably, only 62 per cent of the organisations handed out increments to employees last year owing to the pandemic, the ET report further stated.
Deloitte Predicts 4.4 Increment Hike This Year
Meanwhile, a report by Deloitte Touche Tohmatsu India last month said that increments are likely to go up from 4.4 per cent in the previous year to 7.3 per cent in 2021.
Are companies planning to give double-digit increment this year?
The Deloitte survey said that 20 per cent of companies were planning to give a double-digit increment this year. Only 12 per cent of companies were expected to give double-digit increment in pandemic-ridden 2020. The survey further found out that only 60 per cent of the companies gave an increment last year to their employees, of which a third of them did so through off-cycle increments.
Which sector is expected to give maximum/minimum increment?
The report by Deloitte India has predicted that the maximum increment may be given in the life sciences and IT sectors. The hospitality, real estate, infrastructure, and renewable energy companies are expected to give the least increment this year.