First it was about bonuses, employee stock options (Esops) and flexi working hours. Companies would often use them as carrots to retain talent. Now, it is about luxury cars, high-end phones and expensive flats to attract top performers.
Sample this: IT-major HCL Tech has rewarded 130 top-performing employees with Mercs or all-expenses-paid holidays abroad as a token of appreciation for their contribution to the company. Similar innovative perks are being offered by Infosys, the country’s second-largest IT major. The company has gifted 30,000 of its top employees with iPhone 6s, besides announcing 100% variable bonus payouts for the October-December quarter. The company’s attrition stood at 20.4 % for the quarter ended December 2014, higher than 20.1% in the previous quarter.
Apart from IT, Surat-based Hare Krishna Exports rewarded its employees with cars, jewellery and flats last year.
According to a study by Tower Watson, a US-based HR consultancy firm, employers are innovating their benefit strategies.
“While the trend is attractive, it will not help in retaining talent for longer term,” said Aditya Narayan Mishra, president, Randstad India, a HR consultancy.
Headhunters echoed similar thoughts. “Luxury rewards work in short term and are not sustainable,” said Mayank Chandra, managing partner, Antal international, UK-based executive search firm.