India Inc is readying to reward its employees with handsome bonuses this year and, thus, make up for the disappointments of the last two years.
"The last two years were very difficult and dull. Festival brought no joy for employees as it was the time of salary cuts and pink slips. Even those who retained their workforce and avoided cuts, did not give any increments and bonuses," E. Balaji, director, Ma Foi Randstad, a global hiring firm, said.
"However, as the economy is now upbeat, monsoons are favourable and economic indicators are positive, India Inc is more confident. No wonder they are sharing it with their employees. For the sensitive sectors, however, a big reason for handing out the bonuses is attrition," he added.
Sectors such as retail, fast-moving consumer goods (FMCG), consumer durables, auto and financial services are taking the lead in giving bonuses on the strength of double-digit growth numbers.
Korean consumer electronic company LG Electronics is planning to give 300 per cent of basic pay as bonus to all its employees alongwith their October salary. Samsung India plans to give 200 per cent of basic salary as part of their festive bonus offer to their employees.
Auto companies are not far behind. Maruti Suzuki, India's largest car manufacturer plans to give out 50 per cent of their employee's variable salary as Diwali-bonus by October-end, which can range between Rs 40,000 to Rs 75,000.
According to a survey by Manpower Inc, a leading global placement agency, more than 50 per cent of India Inc is planning to give bonuses this year - in the range of 10-27 per cent. Also, 80 per cent of the firms surveyed said their staff can expect an increment, which would be in the range of seven to 15 per cent.
Ahead of Diwali, Tata Motors will give its employees a bonus, which is 15- 20 per cent more than last year. This will be given in cash as a percentage of the total salary, special festive incentives, gifts or a larger portion of the employee's total variable pay.
"The last two years were dull. So, the employees were deprived of the benefits. When the company is growing and sales look better, they must get a piece of the cake," a senior HR manager at Tata Motors told MAIL TODAY . Retail chains too, have chalked out schemes to boost the morale of their employees. Interestingly, festival season is the peak business period for these companies.
Future Group, the country's largest retailer, is planning to give special incentives and production- linked incentives to its employees. The company, which already offers an incentive scheme, has doubled it for the festival season.
Others companies like Dabur India have similar bonus plans. Dabur has decided to give maximum bonus to employees with basic salary of up to Rs 6,000 per month.
However, IT companies are seen to be slow on handing out bonuses as many of them had recently hiked salaries in the range of 15- 20 per cent.
Courtesy: Mail Today