Talent Management: Driver to Organization Success TOTAL REWARDS TOWARDS AN ENGAGED WORKFORCE: "MAXIMIZING THE RETURNS" Using Benefits as a Using Benefits as a Differentiator DifferentiatorGirinarayana Girinarayanan.firstname.lastname@example.org email@example.com n 15 Feb 2013
The facts and Challenges for India The facts and Challenges for India The work-force in the country stands close to 400 million Only 35 Million are covered under the Social Security Unorganized Sector contributes > 60% of the national income Unemployment and insecure employment Very low minimum wages Wide spread poverty and deprivation“According to international statistics, over 300 millionpeople in India live in extreme poverty on less than US$1 a day, and over 500 million on less than US$2 a day.Only half of the population has access to piped water,and most health services (in fact about 92%) are paid forout of pocket, making India’s health system the biggestprivate health service in the world”
India’s Economic Growth !!! India’s Economic Growth !!! “India’s economy is projected to grow 5% in the current fiscal year, the lowest in a decade and substantially lower than the 5.7% projected earlier by the finance ministry” Economy is estimated at $1.89 trillion (around Rs.100 trillion), would see growth decelerating by almost half from 9.6% in 2006-07 The Central Statistics Office (CSO) revealed that the economic growth of India is estimated to fall to 5 percent in 2012-2013 financial year, which is a lowest figure in 10 years.
2008 Recession: A flashback2008 Recession: A flashback Big turmoil in the global economy Economic crisis reduced GDP Growth & stagnated revenue growth Auto industries witnessed mayhem, Realty collapsed, Banks landed up in soup because of default in loan payments. Restructuring exercise from Corporates to make lean organization and reduce manpower cost Some Corporates implemented heavy cost cutting measures thro - Salary cuts, layoff, closing down business etc. Bottom line Bottom line Fear of unknown Job loss / Salary cuts for employees Heavy stress to manage the crisis Falling ill-health Strain in family relationship Social pressure Hampered the living style Default in the loan payment
Maslow vs. Benefits HierarchyMaslow vs. Benefits Hierarchy
It helps employees to :Manage uncertaintyProvide Financial Security for futurePay attention to HealthcareBe able to manage and live happily postretirement Bottom-line: Bottom-line: An opportunity to improve value, control costs and An opportunity to improve value, control costs and drive Business Goals drive Business Goals
Benefit Programs in India Benefit Programs in IndiaMajor DriversChanging Income Tax rulesViewing compensation as a CTCChanging employees expectationsSalary increases will continue to have spiralling growthMarket value for the job may diminishDifferentiation in salary – pay for role and contributionVariation in Salary revision cycle
Changing Trends….. Changing Trends…..“ Company needs to understand that every employee hasunique benefit needs and therefore they need to create aculture of wellbeing”Benefits play an important role in choice of an employerand helps the employee to live a healthy and balanced life”Way Forward…..More focus on flexi benefits….. Way Forward…..More focus on flexi benefits…..Healthand Wellness to meet individual need Health and Wellness to meet individual needFocuson family support Focus on family supportFinancialassistance thro stock purchase Financial assistance thro stock purchaseSupportto CSR --Charitable institutions //Educational institutes Support to CSR Charitable institutions Educational institutesChangein Leave management system Change in Leave management systemSabbaticals– focus on Learning & Development Sabbaticals – focus on Learning & DevelopmentStatutorybenefits can be made mandatory… Removal of PF Statutory benefits can be made mandatory… Removal of PFCeiling, effective implementation of Employee Compensation Act Ceiling, effective implementation of Employee Compensation Actetc. etc.
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Attracting Talent Attracting Talent Base Benefits Base Benefits Comprehensive Insurance Comprehensive Insurance Vacation VacationtR toint eeninotR n Time off Time off Tax benefits Tax benefits Car Schemes Car Schemes Long term Service rewards Long term Service rewards Club Membership Club Membership Retention Bonus Retention Bonus Benefits: Benefits: Corporate Cards Corporate Cards Superannuation Superannuation Health and wellness Health and wellness Employee Employee Perks Perks CSR CSR ESOPs ESOPs Value Proposition Value Proposition Rewards Rewards Paid Training / /Sabbaticals Paid Training Sabbaticals Education Assistance Education Assistance E lm op pm yy eelE o Global Exposure Global Exposure nR cR e toe gc ino on nig t o Onsite job assignments Onsite job assignments No dNS lcS io ai elc a d e Employee of the Year Employee of the Year