New Delhi: Accenture has announced a change in its promotion cycle from December to June, citing “clients’ planning and demand.” Before this, the IT giant used to roll out promotions in December.
“We are permanently changing our primary promotion date from December to June, which is when we have better visibility of our clients’ planning and demand,” the company said.
According to a Bloomberg report, the company will announce most of the promotions in June keeping in mind the ongoing economic uncertainties within the consulting industry.
The consultancy giant has over 750,000 employees globally. Notably, the consultancy industry has been enduring a prolonged slump that has hurt many big names, including Accenture. The sector is witnessing decreased client spending and a broader downturn in the professional services sector, the report said.
Earlier this year, Accenture lowered its revenue forecast for fiscal 2024, citing the challenges posed by the current economic climate.
No salary hikes to employees in India for fiscal year 2023
Accenture, in October 2023, had announced that employees in India and Sri Lanka will not be getting their annual salary hikes for the fiscal year 2023 following adverse macroeconomic challenges.
In an email from Managing Director Ajay Vij, it was announced that employees will receive individual annual performance bonuses where applicable; however, these bonuses will be significantly lower than last year due to the company's performance challenges. The company had also postponed the promotions across senior management until June 2024.
“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,” he added.
Other consulting firms, including McKinsey & Co., Ernst & Young, and PricewaterhouseCoopers, are reportedly implementing similar measures as they contend with the economic slowdown. Despite a recent increase in demand for AI and automation projects, it hasn't been enough to counterbalance the broader economic challenges.