Understanding Cognizant's 2018 Performance Bonus Structure

The performance bonus structure at Cognizant for 2018 was influenced by a variety of factors, primarily focusing on individual performance ratings and the company's overall financial health. This article delves into the details of how bonuses were determined and awarded in that year, providing insights for current and potential Cognizant employees.

Performance Evaluation and Bonuses

Cognizant evaluates its employees based on a performance rating system, with bonuses varying significantly depending on these evaluations. At the end of each year, an employee's immediate supervisor assesses their performance, placing them into one of four buckets. Each bucket corresponds to a different bonus amount, with the first bucket typically receiving the highest bonus.

For a detailed understanding of the 2018 performance bonus structure, it's important to note that the specifics can vary based on the employee's role and criteria set by the company. The following section provides a breakdown of the bonuses for 2018.

2018 Performance Bonus Breakdown

According to the information available, Cognizant's 2018 performance bonus structure was as follows:

Top Performers (First Bucket): 150% - Typically, employees in the top performance bucket received the most significant bonus, often a 150% increase on their base salary. This percentage varied based on employee level and company criteria. High Performers (Second Bucket): 120% - Employees in the second bucket also received a substantial bonus, around 120% of their base salary. Average Performers (Third Bucket): 90% - The third bucket indicated an average performance, with bonuses around 90% of the base salary. Underperformers (Fourth Bucket): 70% - Employees in the lowest performance bucket received a bonus of 70% of their base salary, if any at all. No Bonus for Some Groups (ER, MA, MS): No Bonuses - In some business units, like EA, EM, and MA, no bonuses were provided, while others received small percentages.

It's important to note that the exact figures and percentages can vary, and for the most accurate information, employees should consult Cognizant's official communications or reports from that year.

Impact of Company Performance

The financial success of Cognizant significantly influenced the bonuses awarded in 2018. The company's strong revenue growth and profitability allowed them to offer competitive bonuses, with the potential for bonuses ranging from a small percentage of base salary to a substantial amount for top performers.

In the 2018 fiscal year, Cognizant reported a solid performance, which directly impacted the bonuses awarded. This financial success was reflected in the bonus structure, with top performers receiving significantly higher bonuses compared to lower performers.

Employee Perception and Feedback

Employees' feedback on the 2018 performance bonus structure has been mixed, with some expressing dissatisfaction. For instance, in the Insurance Business Unit (BU), the company implemented a system that, despite reaching expected revenue goals, forced employees to explore other opportunities due to low bonuses. This system is seen as inconsistent with industry expectations and has been criticized for potentially demotivating employees.

The second quarter of 2018 saw a strong performance, with Cognizant declaring EA, EM, and MA to be at the 141% level, and MA at the 105% level. However, despite these positive indicators, the bonus structure for the Insurance BU does not align with the reported performance, leading to criticism and calls for transparency.

In summary, Cognizant's 2018 performance bonus structure was influenced by both individual and company performance. While the company achieved strong financial growth, the bonus structure faced criticism, especially in certain business units where the gap between reported performance and employee rewards was significant.

To stay informed about future performance bonuses and company updates, employees should follow official communications and company reports.