It is quite true that private organizations have greater liberty in providing a bouquet of benefits and services (as rightly pointed out by Samuel), but the Government is also gradually becoming aware. This is visible in the benefits provided by SBI to its employees. It includes a host of performance bonuses as well as loan facilities. According to a recent article in The Economic Times, “Government is serious about giving grand pay hikes to CEOs of sick public sector units (PSUs). The idea behind the move is to retain them and offer additional incentives for turning around a sick company. Currently, the CMD of a navratna company gets a salary of around Rs 10 lakhs along with other benefits.”
The second PSU pay revision committee has made a strong case for increasing the salary of PSU employees and put them at par with their private sector counterparts. It has also suggested that variable pay or performance-related pay (PRP) should be made an integral part of the compensation package which should be directly linked to the profits of the company. Extension of tenure beyond the age of 60, post-retirement medical benefits and additional gratuity are some other benefits that will be helpful to retain talent.
Ramawatar Sharma
Vice President
Finance
Binani Industries
Mumbai
The second PSU pay revision committee has made a strong case for increasing the salary of PSU employees and put them at par with their private sector counterparts. It has also suggested that variable pay or performance-related pay (PRP) should be made an integral part of the compensation package which should be directly linked to the profits of the company. Extension of tenure beyond the age of 60, post-retirement medical benefits and additional gratuity are some other benefits that will be helpful to retain talent.
Ramawatar Sharma
Vice President
Finance
Binani Industries
Mumbai
1 comment:
I agree with Mr. Sharma. This has always been a major deterrent for candidates to enter public sector employment. Its high time the govt did something to turn this image around. It really isn't the age to focus on job satisfaction ahead of everything else.
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