Accenture, the IT firm, informed its employees in an official email that there will be no salary increases for its Indian and Sri Lankan workforce in 2023. The decision coincides with the IT sector’s challenges and Accenture’s growth falling short of its original projections.
Ajay Vij, managing director of Accenture India, provided this update to employees.
Individual performance bonuses will also be awarded based on contributions, according to the email, though they will be significantly lower than the previous year. Furthermore, the company is reducing promotions.
Promotions up to the associate director level (Level 5) will take place as planned in December, but at a lower frequency than last year. To align with the company’s growth objectives, promotions for levels 1 through 4 have been postponed until June 2024.
The email also clarified that Accenture’s compensation strategy aims to offer competitive pay based on skills and location while keeping the company affordable. As a result, except where legally required or in specific areas of critical expertise, the company will not provide base salary increases this year.
In March 2023, the company announced plans to lay off 19,000 workers over the course of the year. The email explained that the company encountered a macroeconomic environment that proved to be more difficult than expected at the start of the FY23 fiscal year, resulting in lower growth than anticipated.
The IT behemoth, which operates on a September-August fiscal year cycle, reported mixed financial results in the most recent quarter, and its FY24 outlook was the second least optimistic among the yearly forecasts provided in the previous 16 years.
Accenture currently employs over 3,000,000 people in India.