Accenture decides to postpone promotions to and within the managing director level, and appointments to the senior managing director level
Accenture, the world’s biggest IT company by market capitalisation, will not be providing salary hikes to India-based employees this year. Also, the Dublin-based company has decided to postpone promotions to and within the managing director level, and appointments to the senior managing director level.
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The global IT giant, however, said it will continue to pay individual performance bonus based on individual contributions, where applicable.
“Given the context of our performance, we will not be providing any stay at-level (base pay) increases this year except where legally mandated or committed in a few critical skill areas. We are postponing our promotions to and within MD, and appointments to SMD, until June 2024 in order to allow ourselves to return to growth so that promotions are affordable,” according to an internal email sent to employees.
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However, the company said that up to Career-Level 5, the company will do promotions (including sublevel movements in AIOC) in December 2023, lower than last year, reflecting its growth expectations.
Accenture, which has over three lakh employees in India, also said it will continue to pay individual performance bonus based on individual contributions, where applicable.
“As you know, our global annual bonus funding is based on our company performance. Given our performance, you should expect our global annual bonuses to be significantly lower than last year,” according to the email to employees.
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As shared in FY23 results, Accenture experienced a macro environment that was more challenging than it anticipated at the beginning of FY23 and the company’s growth was lower than planned, resulting in the need to make some hard decisions around promotions and rewards, it said.
However, the company also said, “Our clients need us more than ever. By staying close to them, bringing them innovative ideas, and creating even more value every day, we will continue to deliver for them and for all our stakeholders in FY24 and beyond.”
Accenture, which follows the September-August financial year cycle, posted a rise of 4 per cent in its revenue to $16 billion for the fourth quarter ended August 2023. New bookings fell to $16.6 billion from $18.4 billion a year ago.
