Accenture (NYSE:ACN) Plc has announced a shift in its compensation strategy for the fiscal year 2023 (FY23) for its employees based in India and Sri Lanka. The firm's Country Managing Director, Ajay Vij, communicated this change on Thursday, which is in alignment with the company's business health strategy and reward philosophy.
Under this new policy, Accenture will not be providing stay-at-level (base pay) increases to its workforce in these regions for FY23, except where legally mandated or committed in critical skill areas. This decision reflects the company's performance in FY23 and its approach towards competitive pricing amidst challenging industry conditions.
In addition to the freeze on salary increments, the company is also decreasing performance bonuses which will now be based solely on individual performance. Promotions have been significantly reduced and postponed until June 2024 for positions beyond the Associate Director level (level 5) within Accenture's 13-level system. However, promotions up to Level 5 will proceed in December, albeit at a lower frequency.
This strategic move by Accenture follows a similar trend among IT firms grappling with economic pressures. In March 2023, Accenture announced its plan to lay off 19,000 employees as part of cost-cutting measures. Other companies such as HCLTech and Wipro (NYSE:WIT) have also adopted similar measures; HCLTech deferred junior employee salary hikes while Wipro has postponed salary hikes until December 2023.
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