Accenture announces salary hikes and promotions after 2.5 years
This sweeping change, announced as part of the company's June performance review cycle, is expected to affect about 6% of Accenture’s global workforce of approximately 801,000.
ADVERTISEMENT
Accenture has rolled out salary hikes ranging between 3% and 13% for employees at the Associate Manager level (Level 8) and above - marking the company's first round of raises in over 2.5 years, according to media reports.
The company is also set to promote nearly 50,000 employees this June as part of its performance review cycle.
These developments were communicated internally earlier this week and reflect a strategic shift in Accenture's talent management approach following prolonged stagnation.
Internal documents reviewed by Bloomberg indicate that the promotions will impact approximately 6% of Accenture's global headcount, which stands at around 801,000. Of these, 15,000 promotions will occur in India, 11,000 in the Europe-Middle East-Africa (EMEA) region, and 10,000 across the Americas.
Ajay Vij, Senior Country Managing Director for Accenture in India, stated in an internal email, "The company will provide 'stay-at-level (base pay) increases,' including many of those not covered in the December cycle and others in key growth areas," reported Moneycontrol. He added that the majority of Accenture's workforce in India will have received a base pay increase by the end of FY25, either through promotions or level-based adjustments.
Overall, Accenture expects to promote more than 43,000 employees in India through FY25, recognising talent across critical business units. The move also serves to make up for a six-month delay in the promotion cycle, which had been postponed due to a dip in global consulting demand.
The announcement follows Accenture’s Q2FY25 earnings release on March 20, where the firm revised the lower end of its annual revenue forecast upwards. This adjustment was largely driven by increasing demand for AI-enabled solutions in client operations - a growth area the company continues to prioritise. However, operating margins remain under pressure compared to the previous year, as the company faces challenges posed by economic volatility and geopolitical tensions.
While Accenture pushes forward with proactive talent retention, domestic IT peers remain cautious. Tata Consultancy Services (TCS) and Wipro have both deferred their annual salary hikes, citing uncertain business conditions, the report added.
Detailed promotion letters are scheduled to be distributed between May 26 and 29, with all information to be shared by the end of the month.
