This appraisal season, get ready to see your basket of benefits expanding — even if at the expense of any big change in cash in hand.
A survey by global human capital firm Aon Hewitt has found that benefits are 'making a comeback' this year. "Benefits have emerged as a top measure for retention of top management," the survey, which covers over 500 companies, said.
Apart from working as tool to ring fence top talent, the report says, programmes on leadership opportunities, overseas assignments, fast-track programmes for hi-potential employees are among initiatives gaining prominence for both new hires and existing employees.
"While 76% of the organisations have increased their benefits budget as compared to last year, almost 50% of the firms have increased their budgets because the number of people availing these benefits has risen," found the survey.
While India still continues to be the youngest country in the world, a sizable population is now utilising benefits such as insurance and maternity leave, said the report, which is an extension of the 19th edition of the annual salary survey released last month. "In addition organisations are investing heavily in wellness benefits for employees, along with better transport facilities and women-safety measures," Anandorup Ghose, rewards consulting practice leader, Aon Hewitt India told HT. "Benefits work as a differentiator in today's environment. If the inflation stands at about 8% to 9% and salary increase is about 10%, a person's ability to buy takes a serious hit. Here, benefits help in making the tradeoff comfortable."
The survey also predicted that corporate India may dole out an average salary increase of 10.6% this year, which is a marginal improvement over the salary raise of 10% paid last year.