Indian organisations took incentive-based measures to attract, retain talent during pandemic: Study

Published on : 06:29 PM Dec 02, 2021

According to a recent Mercer India study - 'Leveraging Incentives for Competitive Advantage', as many as 97 per cent companies have an active short-term incentive plan for in-year performance recognition.

Mumbai: Most Indian organisations have taken progressive incentive-based measures to attract and retain talent during the pandemic, says a study.

Advertisement

window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() {var userAgent = window.navigator.userAgent.toLowerCase();var Andrioid_App = /webview|wv/.test(userAgent);var Android_Msite = /Android|webOS|BlackBerry|IEMobile|Opera Mini/i.test(navigator.userAgent);var iosphone = /iPhone|iPad|iPod/i.test(navigator.userAgent);var is_iOS_Mobile = /(iPhone|iPod|iPad).*applewebkit(?!.*version)/i.test(navigator.userAgent); if ( Andrioid_App == true || iosphone == true ) {console.log("Mobile"); var slot_9335 = googletag.defineSlot("/175434344/ETB-APP-ADP-English-National-Bharat-300x250-1", [300, 250], "div-gpt-ad-498736564703-0").addService(googletag.pubads());}else if(Android_Msite == true || is_iOS_Mobile == true){console.log("m site"); var slot_9335 = googletag.defineSlot("/175434344/ETB-MDOT-ADP-English-National-Bharat-300x250-1", [300, 250], "div-gpt-ad-498736564703-0").addService(googletag.pubads());}else{console.log("Web"); var slot_9335=googletag.defineSlot("/175434344/ETB-ADP-English-National-Bharat-728x90-1", [728, 90], "div-gpt-ad-498736564703-0").addService(googletag.pubads());} googletag.pubads().enableSingleRequest();googletag.pubads().collapseEmptyDivs();googletag.enableServices(); googletag.display("div-gpt-ad-498736564703-0");googletag.pubads().refresh([slot_9335]);googletag.pubads().setCentering(true); });
googletag.cmd.push(function() { googletag.display("div-gpt-ad-498736564703-0");googletag.pubads().refresh(); });

According to a recent Mercer India study - 'Leveraging Incentives for Competitive Advantage', as many as 97 per cent companies have an active short-term incentive plan for in-year performance recognition.

The study conducted earlier this fiscal by Mercer India, covered 41 organisations, representing over 3,00,000 employees pan-India, and included corporates spanning the consumer, chemicals, life sciences, IT services and Internet-based or e-commerce industries. Advertisement

With changing work dynamics and employee expectations, the respondents believe it is imperative that the human resources team structure the short-term and long-term incentive plans to ensure that the incentives were aspirational, sizeable, and fair and simple, while also being achievable.

As per the study, employee retention and enabling wealth creation for employees were the most prevalent objectives of long-term incentives.

window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() {var userAgent = window.navigator.userAgent.toLowerCase();var Andrioid_App = /webview|wv/.test(userAgent);var Android_Msite = /Android|webOS|BlackBerry|IEMobile|Opera Mini/i.test(navigator.userAgent);var iosphone = /iPhone|iPad|iPod/i.test(navigator.userAgent);var is_iOS_Mobile = /(iPhone|iPod|iPad).*applewebkit(?!.*version)/i.test(navigator.userAgent); if ( Andrioid_App == true || iosphone == true ) {console.log("Mobile"); var slot_22 = googletag.defineSlot("/175434344/ETB-APP-ADP-English-National-Bharat-300x250-1", [300, 250], "div-gpt-ad-8817945735124-0").addService(googletag.pubads());}else if(Android_Msite == true || is_iOS_Mobile == true){console.log("m site"); var slot_22 = googletag.defineSlot("/175434344/ETB-MDOT-ADP-English-National-Bharat-300x250-1", [300, 250], "div-gpt-ad-8817945735124-0").addService(googletag.pubads());}else{console.log("Web"); var slot_22=googletag.defineSlot("/175434344/ETB-ADP-English-National-Bharat-728x90-1", [728, 90], "div-gpt-ad-8817945735124-0").addService(googletag.pubads());} googletag.pubads().enableSingleRequest();googletag.pubads().collapseEmptyDivs();googletag.enableServices(); googletag.display("div-gpt-ad-8817945735124-0");googletag.pubads().refresh([slot_22]);googletag.pubads().setCentering(true); });
googletag.cmd.push(function() { googletag.display("div-gpt-ad-8817945735124-0");googletag.pubads().refresh(); });

However, it was observed that organizations were progressively moving away from hierarchy for eligibility.

Also Read: Employment in 9 sectors at 3.08 cr in Apr-Jun, finds labour survey

"New-age organizations and startups seem to be following differentiated practices, such as discretionary grants, ESOPs, appraisal-based grants etc. primarily for ring-fencing critical talent and providing liquidity to employees," the study said.

According to Mansee Singhal, Sr Principal, Rewards Consulting Leader India, there is a distinct correlation of the pay structure with the evolution of the organization.

window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() {var userAgent = window.navigator.userAgent.toLowerCase();var Andrioid_App = /webview|wv/.test(userAgent);var Android_Msite = /Android|webOS|BlackBerry|IEMobile|Opera Mini/i.test(navigator.userAgent);var iosphone = /iPhone|iPad|iPod/i.test(navigator.userAgent);var is_iOS_Mobile = /(iPhone|iPod|iPad).*applewebkit(?!.*version)/i.test(navigator.userAgent); if ( Andrioid_App == true || iosphone == true ) {console.log("Mobile"); var slot_1931 = googletag.defineSlot("/175434344/ETB-APP-ADP-English-National-Bharat-300x250-1", [300, 250], "div-gpt-ad-7232423238661-0").addService(googletag.pubads());}else if(Android_Msite == true || is_iOS_Mobile == true){console.log("m site"); var slot_1931 = googletag.defineSlot("/175434344/ETB-MDOT-ADP-English-National-Bharat-300x250-1", [300, 250], "div-gpt-ad-7232423238661-0").addService(googletag.pubads());}else{console.log("Web"); var slot_1931=googletag.defineSlot("/175434344/ETB-ADP-English-National-Bharat-728x90-1", [728, 90], "div-gpt-ad-7232423238661-0").addService(googletag.pubads());} googletag.pubads().enableSingleRequest();googletag.pubads().collapseEmptyDivs();googletag.enableServices(); googletag.display("div-gpt-ad-7232423238661-0");googletag.pubads().refresh([slot_1931]);googletag.pubads().setCentering(true); });
googletag.cmd.push(function() { googletag.display("div-gpt-ad-7232423238661-0");googletag.pubads().refresh(); });

"In its initial years, the focus of the organization is on Base Pay and Long Term Incentives to cater to short-term realities around talent attraction as well as build on long-term growth expectations of the organization," Singhal said.

Singhal further added that "ultimately, incentives should be based on the back of a clear, transparent process of individual and organizational performance assessment failing this, even the most creative plan design will not yield the appropriate outcomes."

As the organization grows, matures both in terms of business models, cash flow consistency as well as people practices, the pay structure becomes more well-rounded with Base Pay serving as the anchor for driving competitiveness and based on the position.

Short Term Incentives recognised in-year performance differentiations and Long Term Incentives enabled multiple mid-term objectives (retention, core performance goals achievement etc.), the study noted.

PTI

Next
Latest news direct to your inbox.