Financial Daily from THE HINDU group of publications Monday, Apr 10, 2006 |
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Human Resources Info-Tech - Insight For you - and your family
Abhinav Ramnarayan
Industry observers say the cost of such rewards could be 3-5 per cent of overall salary outgo.
Back from an all-expenses-paid, three-day trip to the sunny beaches of Goa, Mrs Sharma just cannot stop gushing to neighbours about the outing that was sponsored by her son's IT firm as a reward for his exceptional performance in a particularly challenging IT project. The funky iPod back home, too, is a constant reminder of how her son had managed a tight deadline in another project six months ago, and just how much the company had appreciated his efforts. Welcome to the new-age HR practice that believes in rewarding the employee along with his family in recognition of achievements at the workplace. The reward itself may vary. It could be gift items that the entire family can use or trips and cruises to destinations such as the islands of Bahamas, the unique Singapore or closer home locales such as Pondicherry or Goa. Strengthening the `bond' further is the fact that in many cases the items given out as gifts such as televisions, DVD players and cell-phones carry the company logo a gentle reminder of the organisation they work for. "IT and ITES companies these days have been going the manufacturing way, showering their employees with gifts, to show their appreciation for their efforts. And usually it is something that the entire family can touch and feel, to create a sense of relationship between the employee and the firm," says Pandia Rajan, Managing Director of HR Consultancy firm, Ma Foi.
Something for everyone
For Cognizant, it has been company policy since 1995-96 to give out gifts to employees every time the company achieves a milestone, according to R. Chandrasekaran, Managing Director and Executive Vice-President, Cognizant. "It so happens that we've reached a milestone almost every year," he says. So when the company recently achieved the $1-billion revenue milestone, it decided to celebrate in style, doling out the latest fifth-generation iPod Videos to 15,000 employees who had served the organisation for over a year. Companies such as Wipro Technologies offer employees a travel bonanza with family members for their long stint in the organisation. Wipro has long service awards such as the Club 5, 10, 15 and so on where employees who have spent a particular number of years in the company are recognised by the organisation. As a token of appreciation, Wipro gives out two-three day holiday packages for the entire family for a destination within India. "We have programmes that aim to recognise an individual or a team performance and the rewards vary. Some recognition programmes are also at the organisational level where the family has been involved, which definitely strengthens their bonding with Wipro," says Veena Padmanabhan, Manager-Talent Engagement & Development, Wipro Technologies. An example from the recent past is The Best People Manager (BPM) Award, which recognises managers who have contributed in adopting and institutionalising Best People Practices to engage, motivate and retain talent. The Best People Managers were felicitated in Sarjpaur Campus in January this year. All the awardees, along with their spouses from across locations in India, were flown down to Bangalore exclusively for this ceremony, she says.
In employee interest
But relationships are also being established beyond the realm of performance. Banking-related software companies seem to be giving employees home loans on a reduced rate of interest. A case in point is Intelenet Global Services, a joint venture BPO solutions company between Barclays Bank and HDFC, which offers all of HDFC products to its employees at reduced rates of interest, according to Manuel D'Souza, Vice-President-HR, Intelenet. These rates are typically comparatively better than those available in the market. That said, an individual still remains the focal point of reward initiatives, with each policy designed to encourage higher levels of performance. "It makes them (employees) happy and satisfied that the company is recognising the hard work that they put in. It also fosters an atmosphere where every individual strives to achieve his or her best," D'Souza says, adding that the company has also distributed white goods such as refrigerators, television sets, DVD/VCD players and air-conditioning systems, for high performers in the past. According to IT and BPO firm InterGlobe Technologies, gift hampers such as DVDs, dinner vouchers for employee along with spouse, or weekend getaways are instant rewards that employees can share with their families. "Being a part of a larger group which is into travel services also allows us to offer tickets on Turkish Airlines or Virgin Atlantic to employees for their outstanding performance. Bonding with the family of the employee is important for us, as we belong to an industry that is known for its long work hours. Hence the rewards and recognition programmes are formulated in such a way so as to involve the entire family," points out Vipul Doshi, Chief Executive Officer of InterGlobe Technologies. Agrees Piyush Mehta, Senior Vice-President, Human Resources, at business process outsourcing company (BPO) company Genpact. "We have a Web-based rewards and recognition programme that runs on similar lines as airlines' frequent fliers programme. Any Manager can go and reward an employee who has done well by assigning reward points, which can be accumulated by the employee and redeemed against various items such as golf sets, meal-for-two vouchers, white goods (including TV and washing machine), or holiday package for two to destinations such as Jaipur or Goa" Mehta says. The highest recognition under `Platinum Award' could be a fully-paid, four-day trip to an overseas destination with the employees' spouses. "Last year, we took 45 Genpact employees with their partners to Greece," he points out. Polaris Software, the Chennai-based BFSI solutions specialist, has a stream outing budget for all 6,000 associates, at a budget of Rs 1,800 for each employee every year, with the intention of encouraging cohesiveness and teamwork, according to Arvind Mishra, Executive Vice-President and Global Head - Talent and Change, Polaris. On a more performance-based level, the company gives gifts such as home theatre systems, iPods, and crystal trophies for employees who have won awards based on performance. It also earmarks a set of its employees as outstanding achievers and potential leaders. These employees, referred to in-house as `Konarks', enjoy benefits such as an annual medical check-up (with Apollo Hospital), Rs 1,000-worth magazine subscription, Rs 1,500 for family dinners, and an annual get-together with the family at an outstation location in the range of Rs 10,000-12,000 per family. The story is the same for HCL BPO, which gives out electronics items such as TV, refrigerator, DVD player, digital camera and microwave to its employees. The "involvement of family becomes crucial given factors such as the unconventional working hours of employees and stressful work schedule. Therefore policies are designed to create a sense of belonging," says Ranjit Narasimhan, President and CEO. While companies are wary of divulging the cost outgo on such initiatives, industry observers say that as much as 3-5 per cent of the overall salary outgo is channelised into reward programmes in IT companies. Veena Padmanabhan of Wipro, however, feels that although employee encouragement programmes act as a catalyst in talent retention, such programmes, by themselves, cannot ensure employee satisfaction. "Employees tend to see their stint in a company in its entirety, that is the scope of their work, recognition programmes, opportunities, exposure and remuneration. However, one cannot ignore the fact that recognition in any company plays an important role in employee satisfaction as everyone needs to know how well he or she is fitting into an organisation's goal," she says. To that effect a cocktail of `employee rewards' with a dash of `family involvement' can prove to be a heady mix for sustained employee motivation at the IT workplace, driving performance and, more importantly, reinforcing behaviours that would help companies meet their long-term objectives.
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