BENGALURU: In a first for the IT industry in recent times,
Cognizant has rolled out a skills premium allowance. This year, it has been given to 40,000 digitally-savvy employees.
The move, designed to encourage employees to build and improve their skills in newer digital areas like machine learning and artificial intelligence, is applicable to levels up to that of manager.
James Lennox, global chief people officer in Cognizant, told TOI the world's technology dependence is increasing exponentially and definition of digital is broadening to encompass new technologies and skill sets. "Global demand for the skills we specialise in is increasing even as the tech talent shortage is growing.
Skills premium allowance is one of the means towards that end and has come to include a wide range of digital skills and growing number of employees. It has helped us make compensation more competitive for associates with niche skills," he said.
The Nasdaq-listed firm said its average hikes this year are among the best in the past five years. The average increment is around 7 per cent-8 per cent for offshore employees. The second cycle for senior managers and above will be announced in October.
One reason for the attractive rewards is Cognizant's relatively high attrition levels in recent quarters. In the first quarter of 2018, its annualized attrition rate of 20.3 per cent was higher than what it has traditionally seen in that quarter. Most IT companies, however, are beginning to sharply differentiate salaries, with top talent being rewarded handsomely.
Unmesh Pawar, partner and head of people (performance and culture) at
KPMG India, said companies are making strategic choices to reward hard-to-hire talent. "A few years ago, developers specialising in SAP were given a hot skill bonus.
Today, companies are placing a premium on those trained on S/4 HANA implementation or Success-Factors and these digital skills are shaping reward strategies," he said. Pawar said with digital being the new normal, an organisation's agility is key to business success and companies are building a practice to grow its digital talent pool.
