ccenture Plc is reportedly planning to push back the bulk of its staff promotions by six months in the latest sign of a prolonged slump that’s hurt the wider consultancy industry. According to a report in Bloomberg, the Dublin-based technology giant told employees in an internal blog post last week that it will announce most promotions in June, rather than in the usual month of December. The technology giant has over 750,000 employees globally.
The blog reportedly cites ongoing economic uncertainties within the consulting industry . This decision comes as a result of decreased client spending and a broader downturn in the professional services sector. Accenture 's revenue forecast for fiscal 2024 was lowered earlier this year, reflecting the challenges posed by the current economic climate.
No increments for employees in India and Sri Lanka for FY2023
In October 2023, Accenture had communicated to its employees in India and Sri Lanka that they will not receive hikes for the fiscal year 2023 following adverse macroeconomic challenges. In an email sent out by the country, managing director Ajay Vij said that employees will get individual annual performance bonuses where applicable although they will be significantly lower than the previous year due to the company's performance setback.
The company also reportedly postponed 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.
Similar measures are also said to have been adopted by other consulting firms, including McKinsey & Co., Ernst & Young, and PricewaterhouseCoopers, as they navigate the slowdown. While there has been a recent surge in demand for AI and automation-related projects, it has not been sufficient to offset the overall economic pressures.
The blog reportedly cites ongoing economic uncertainties within the consulting industry . This decision comes as a result of decreased client spending and a broader downturn in the professional services sector. Accenture 's revenue forecast for fiscal 2024 was lowered earlier this year, reflecting the challenges posed by the current economic climate.
No increments for employees in India and Sri Lanka for FY2023
In October 2023, Accenture had communicated to its employees in India and Sri Lanka that they will not receive hikes for the fiscal year 2023 following adverse macroeconomic challenges. In an email sent out by the country, managing director Ajay Vij said that employees will get individual annual performance bonuses where applicable although they will be significantly lower than the previous year due to the company's performance setback.
The company also reportedly postponed 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.
Similar measures are also said to have been adopted by other consulting firms, including McKinsey & Co., Ernst & Young, and PricewaterhouseCoopers, as they navigate the slowdown. While there has been a recent surge in demand for AI and automation-related projects, it has not been sufficient to offset the overall economic pressures.
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