One of the world’s leading IT services companies, Cognizant, is planning to recruit 28,000 freshers this year in India compared to 17,000 hired last year in 2020 to deal with a sheer rise in a voluntary decline of 21% compared to 19% in the previous quarter.
The rise in decline is now producing hurt to the company’s revenue, as it was forced to let go of new business due to its incapacity to hire talent.
The company is now setting in place measures that include training, quarterly promotions, and job rotations to provide more chances for growth and stanch attrition. The company has a headcount of 2,96,500, and more than two lakh employees are based in India.
“Our first-quarter performance reflects solid revenue growth in our digital services and consistent execution of our strategy,” said Jan Siegmund, Chief Financial Officer, “To support our commercial momentum, we are increasing our investments in recruiting and talent,” CFO added.
CEO of Cognizant, Brian Humphries, told an earnings call that the company is doing the right thing to address the decline. “And of course, in the meantime, we’re working to manage the salary inflationary elements of this.”
Brian said the company will see steady increases in attrition based on the resignations in the last few months because there was a two-month notice period in India. “So we have a strong understanding as to what attrition will be in Q2. But that’s been factored into our model and into our guidance. And in the meantime, we’ve been hiring at record pace given the extra recruiters we’ve put to work,” Brian said to the Finacial Express.
He added that so as to address retention challenges, the company has been administering a multi-part plan that includes stepping up its internal engagement efforts, increasing investments in its people through training and job rotations to provide opportunities for career growth.
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