So this news about Cognizant came out yesterday:
In an unusual move and in a bid to tackle its high attrition rate, Cognizant has set up a $30-million corpus, dubbed as a retention fund, to hold back top performers and digitally-skilled employees. The corpus is used when such employees receive offers from competitors. Cognizant, sources said, matches the competitor’s offer.
In my opinion, counter-offers don't work in the long term. If it takes a resignation from an employee for an employer to raise their salary to what a competitor is offering, then the employee-employer trust is broken to be replaced by a mercenary mindset
It will also lead to others in the company thinking that if a resignation is the only way they can get their employer to notice them, then employee engagement goes for a toss.
What is intriguing is the way that Cognizant is publicising this corpus. It's almost like they are encouraging their skilled talent to be mercenary minded. That almost never ends well. We have to wait and watch how it turns out for Cognizant in the long run.