Cos now offer quarterly bonus, too

MUMBAI/BANGALORE/DELHI: Corporate India is going all out to retain its top-level staff, with mid-term hikes of up to 20%. “Mid-year hikes and increments are hitting the roof. I think employees, especially the senior level, have to see beyond money, which is a short-term attraction. Organisational culture and career growth are far more important than mere monetary gains,” he said.

The entry of large corporates in retail has led to a poaching binge. Pantaloon Retail, Shopper’s Stop, Pyramid and other retail majors have stepped up employee incentives sharply in recent months. “

Most booming markets have faced this trend, especially in S-E Asia. We are a market-driven company, and there will be an element of unplanned review that takes place. But, the hike shouldn’t be a knee-jerk reaction to competition,” said Bharti’s HR corporate director Daljit Singh.

Some of the more aggressive corporates are not too comfortable with sticking to a standard incentive structure. “One year is too long in the life of a company and an industry like ours, where market shares are won and lost on a daily basis. Mid-term hikes are needed to retain deserving talent, and is not really done across the board,” said a top official in a telecom company.

Several corporates are even offering bonuses and increments on a quarterly basis to top teams, a top HR head said. “Although it is a short-term reaction, we have to react proactively to the market scenario and retain our performers. The average time taken for a new person to pick up skills is 0-6 months, which is critical time lost for a company. Also, replacement costs like hiring consultants will add up to a huge expense and a lot of pressure on HR,” said Dabur India’s HR chief A Sudhakar.

Companies are identifying people who may be tempted to leave and are devising ways of retaining them, for instance, by offering learning and development facilities, sending them abroad after making them sign one-year bonds, etc.

Talent shortage is a reality that corporates will have to deal with for at least the next 5-10 years, said Essar’s HR group president Adil Malia.Company observers see it as a reactive strategy to deal with retention and attrition in a dynamic market.Leading players are doing away with hierarchy and setting up ‘working boards’ and ‘core teams’ to step up employee involvement. Companies are changing the traditional management style of closed-room strategy decisions and involving senior staff in growth plans.

Hewitt India’s practice leader Saharad Vishvanathan said, with the rising war for talent, rampant poaching, and competitive scenario evolving rapidly, most companies are grappling with frequently aligning and benchmarking their own salaries with that of rivals.