Many cos recognise employee efforts through rewards

Many companies in India have opened their purse strings to reward their employees, undeterred by the raging second wave of Covid-19 cases that has once again cast uncertainty over business prospects and the economy.Companies across sectors are giving their employees a combination of increments, promotions, variable pay and one-time special bonuses despite the disruptions and external market conditions. Others are promising not to cut salaries and jobs.Top officials from these companies said this was their way of recognising the efforts and achievements of employees over the past year through unprecedented and challenging times.Reliance Industries said on Monday that the entire variable pay for the financial year 2020-21 would be paid to all its employees, acknowledging their efforts in a difficult, pandemic year.Earlier this week, broking firm Motilal Oswal Financial Services gave bonus, variable pay and increments to all its employees.“We wanted to give that comfort to people,” said Sudhir Dhar, executive director and head of HR.At RPG Group, everyone received an increment for FY21 and will get it for the new cycle too, said chairman Harsh Goenka.“We have always placed employees first and continue to do so. We have not cut salaries or sacked a single person,” Goenka told ET recently.Capgemini went ahead with increments and promotions for all eligible employees effective April 2021 and concluded their variable pay assessment.82423249Assurance of Job Safety“We have a clear view of our business model as well as our strategic levers, which has enabled us to make this decision for our employees and reward them for their contribution to business,” said Pallavi Tyagi, CHRO – India, Capgemini.Panasonic Life Solutions India handed out higher increments this year than last year, said Akash Sangole, head of HR. Variable pay, based on performance, will be paid out in May.Flipkart announced annual increments in April. BigBasket had gone ahead with hikes and bonuses in April, said Tanuja Tewari, VP-HR.Some CEOs have assured employees that salaries and jobs won’t be cut. “There is clear communication to the employees that there will be no job cut and no salary cut,” said Saugata Gupta, MD of Marico.Companies in sectors such as automobiles, which have faced greater disruption due to the pandemic, are going all out to reassure their employees.“The commitment our employees have delivered through a difficult situation warrants us to continue to reward them with salary hikes, bonuses and promotions, irrespective of the economic situation,” said Jan Frydrych, executive director of HR at Skoda Auto Volkswagen India.However, compensation experts said companies not in the essential goods segment may find the first quarter a washout from a business perspective and there could be cost pressures that restrict budget flexibility.Going by last year’s experience, some companies are worried that if the situation improves quickly and the pay and increments this time are not in line with market norms, they could be faced with increased talent attrition, said Anandorup Ghose, a partner at Deloitte India.Earlier, PwC India paid a one-time special bonus to all employees, said Padmaja Alaganandan, chief people officer.

from Economic Times https://ift.tt/3b271LV