News: Cognizant tries to fight attrition with quarterly promotions

#Corporate

Cognizant tries to fight attrition with quarterly promotions

With attrition being over 20 per cent in three successive quarters, Cognizant is trying to cut talent loss with quarterly promotions and digital skill compensation.
Cognizant tries to fight attrition with quarterly promotions

Cognizant stated that while the coming year might usher in major restructuring within the organization, for the moment, the focus is still on quarterly promotions along with digital skill compensation programmes to help in the battle against attrition.

The company had been going through a difficult phase of losing out on top talent post an array of cost-cutting measures and attrition has been at 20 per cent through the last three successive quarters.

James Lennox, Executive Vice President and Chief People Officer, was reported stating, “For our junior employees, we have reintroduced quarterly promotions. That group wants to see upward mobility early in their careers. We’ve also created a number of niche-skill, digital compensation programmes where the market will support that.”

Lennox also added that since every phase of attrition is different, the point is to have system and measures in place for target groups of employees who are likely to leave.

The programmes for digital skill development are also aimed at incentivizing employees by encouraging them to bridge skill gaps not only for their own professional advancement but also to nurture a stronger employee base that wins and maintains business.

It is often a tightrope walk between placating investors who demand higher margins and employees who would pushback against cost-cuts. While 400 senior executives accepted voluntary retirement last year, an additional 200 senior executives were asked to leave. The company’s third-quarter results hint at further realignment.

“We may incur additional realignment charges for the remainder of 2018 and in 2019. Our realignment initiatives are intended to further improve our cost structure primarily by optimizing our resource pyramid,” the company stated in a press release.

While IT companies like Infosys and Cognizant see attrition creep up, the need for digital reskilling rises and the talent scenario is changing before more companies have had the time to adjust to the last set of change waves. The next phase of restructuring would surely unfold the picture further.

Topics: #Corporate, Talent Management

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