The story so far...

We would like to thank all the participants for sharing their thoughts and opinions with us, and providing us views from different functions across different industries. We have come across such myriad benefits and services that organizations provide. Organizations are taking “Benefits management” seriously and gearing up to attract and retain the best from the talent pool. Right from tax exemption to rewards and recognition programs, from training to flexi-hour policies, child adoption programs to higher education allowance, organizations provide a bouquet of benefits that are lucrative. When monetary rewards are almost similar for all the organizations in the same sector, it is these benefits that make a difference. The private sector definitely uses these as a tool to gain competitive advantage. We also saw that not only the private sector, but also the Government is realizing the importance of retaining high performing leaders, and changing the traditional norms to the extent of extending the retirement age! It is these softer issues that organizations take advantage of. This heralds the beginning of a new era where non monetary benefits also come into the lime light.

Post by Anshul Khanna...PepsiCo India Beverages

PepsiCo India Beverages provides a host of benefits and services to its employees. These include programs like IJP (Internal Job Posting), CDAP process (where the employee chalks out his/her main objectives and needs for fulfilling the same), the LearnSmart program (introduces the powerful, first ever LearnSmart Card that entitles you to create and execute your own Development plan basis your need and convenience). Other non-monetary benefits include Flexi time, Dual Establishment policy, Sabbatical policy, Spouse Hire policy, Hospitalization, Medical benefits, vacation leave. Life insurance and vehicle insurance is provided. At PepsiCo, it is believed that “Total Rewards is one of the five Factors that drive Employee Satisfaction and Commitment”. Monetary rewards include stock options, retirement schemes, performance based pay (depending on both individual as well as organization’s performance). PepsiCo believes in the following:
“Reward and Recognize employees for their performances that reflect our goal of achieving leadership and growth while also abiding by our values and promoting an inclusive work culture.”
Under the ‘A-ha’ program of excellence, there are a number of awards at the MU (Market Unit) level, BU (Business Unit) level and at the international level. These are important as they instill a sense of pride in the employees, especially awards like Cost Saver Award and the Innovator Award for the marketing department, the Ring of honor award for senior level employees (Band 10+).
For FMCG companies, where the competition is so tough, such benefits and services gain paramount importance in attracting and retaining talent, for us, especially the sales force.

Anshul Khanna
Brand manager
Mirinda
PepsiCo India Beverages

Post By Sumit Gupta

Employees place high value on benefits they receive. They prefer an organization which can provide them not just with a salary and some appreciation, but with a sense of security and a sense of belongingness....they should feel that my company cares for me..

Companies pay attention on benefits management because employees today consider it as their right.. from being an additional benefit, some of them have become basic need.. additionally, packages are no longer a constraint for attracting a talent.. so this has become one of the major differentiating factors for employees.. companies are only trying to understand an employee mindset and changing with the changing needs.

By: Sumit Gupta, Work-ex :3 years in a start-up firm at Bangalore, Currently a student at IIFT Kolkata

Organizational dynamics leads to the benifit structure..

Hi All,

While going thru all the posts by many individuals from various industry and companies I feel that the organizational dynamics plays an important role in designing the benefit structure for them. Big MNCs like GE, Tata Steel, huge public sectors like SBI operates with the concept of economy of scale. They give too much importance in long term employability by providing long term schemes like high basic pay or net in hand pay unlike performance based variable pay. Companies like HUL in India and GE worldwide known as the CEO factory for their intensive employee improvement schemes. But companies like 3M, Google provide too much of freedom to employees to try, innovate even fail.....

The high attrition rate in major IT companies does not bother affect their bottom line because they know if a large chunk of employees are leaving them, at the same time a similar chunk of employees are joining them due to the concept of 33 % hike in pay package while switching from one company to another.

Similarly the higher pay package of tier 1 companies like Microsoft, Google, sap labs attract employees from the tier 2 IT companies. But the number is very few as they operate on the principle of developmental projects unlike the maintainace/support work which satisfies the employee in both compensation and work wise. Many ppl wants to work routine based work so they are happy with the current monotonous work culture prevailing in their organization.

But it is important for the organization to observe when it transforms from one stage to another. and accordingly design its benefit structure. Wipro has the highest attrition rate among all IT companies in India but still then its employees are increasing day by day....now its nearly 100000...n its bottom-line is also growing...

M n A plays an important role in designing the structure according to the cultural change but at the same time it benefits a lot and dissatisfies some....

As I said earlier organizations should keep on innovating the strategy....but with the employees ' consent after all this are for them only..they are the major stakeholders of any organization...there is not dearth of any labour/employee pool....companies are shifting their operation from low cost to lower cost places like India, China, etc...

Some employees want short term growth and some want long term security...So accordingly the companies should strategies their policies and no doubt they are doing it...small scale or new prospectors are giving too much importance on individualistic approach like taking them to show a movie...but large scale employers giving stress on group performance... so benefiting the employees if the company grows(organizational benefits...)

So one important thing matters is the level of transparency....where employer and employee can collaborate to grow....where the employer can chose the ri8 employees n vice versa...

Bijen Pattnaik

Post by Mr.Tarun Banerjee...State Bank of India

In Government organizations there are some inherent benefits that are assumed and confirmed with a job, for e.g., pension, medical benefits, LTA and DA. Usually no performance allowance is there, so people look for what is the basic pay or you can say cash in hand component. Definitely having the variable component related with performance will bring in more efficiency into the system. However in SBI, we have performance bonus, largely introduced to handle competition from the private sector banks. These are lucrative for attracting and retaining talent. Some other important benefits include loans at lower rates (can’t be disclosed), medical facilities and subsidized food.

Tarun Banerjee
Chief General Manager
State Bank of India
Ballygunge Branch
Kolkata

Kavindra Joshi (Wipro->Sap Labs)

Hi,
This is Kavindra Joshi. Designation : Software Engineer at SAP LABS INDIA PVT LTD. Have a total experience of 3 years in the IT Industry.

I have seen in my stint in this IT Industry that "People are the most vital assests to the company". In the service industry this is even truer! When i went through the posts blow the one issue that caught my attention is the question by SSG if Benefits can be source of Competitive Advantage for a firm.

I found it especially interesting because one of the key reasons of leaving Wipro to join SAP Labs. was the marked difference in the HR policies of the two companies. I preferred to leave my On-site opportunity at Wipro as the benefits in SAP Labs are far superior. I am given free Sodexho Coupons for food, free Bus service (which used to cost a whopping Rs. 1300 p.m. in Wipro) and CTC i was promised was not inflated. Because of all these reasons i have been able to get much more cash in hand for the same package in SAP Labs than i would have got in Wipro.
In fact some of the benefits like Health Insurance were there in Wipro but there was a tedious process of filing for the claims and then waiting for weeks before that money miraculously appeared in your Bank account. Here there are no such hassles- Health benefits are like everything else-pure Cash!

Ultimately the result of above policies in SAP is that i am able t save so much more and in nstruments i want to! The flexi-timings are another motivator for a late morning person like me ;P

All in all i personally feel that superior Benefits make the company so much more lucrative for the employees to stay and work in!