Janalakshmi Financial Service HR Dilemma

1. Janalakshmi Financial Services`
HR Dilemma

2. SITUATION ANALYSIS
1.Customer impression on the brand is completely
reliable on the field sales executive.
2. Proper training and recruitment ,satisfied
compensation structure so that the performance appraisal
process is simple and fair.

3. 3. Attrition rate is 41% which was
extremely high and above the market
average of 32%

4. PROBLEM IDENTIFICATION
1. A key problem was the low salaries
for sales officers .
2.Designing of the compensation
structure .

5. 3. The firm was penalizing officers by raising their targets and
thus reducing their sales-force motivation.
4. Lack of effective engagement ,communication and
information among the employees

6. Criteria
Lower the
attrition
rate
Awareness
of non-
monetary
benefits
Employee
engagement
Incentives
which will
lead to
productivity
Employee
recognition
program

7. Options
• Cost of living Index
• Reward System
• Sliding target customer structure
• Linking target with branch age
• Emphasis on cross selling customer relations
• Combine the responsibility of CREC and CRES

8. DECISION &
RECOMMENDATION

9. Introducing a sliding target compensation Structure
Top management
• 50th percentile of market :variable component to be paid
annually
Senior
management
• 66th percentile of market :variable component to be paid
annually
Mid management
• 75th percentile of market :variable component to be paid
annually
Junior management
• 90th percentile of market :variable component to be paid
annually
1
4
Top
management
2
3
Career bands Career level
Target
Composition

10. Linking Targets with Branch
Age

11. Cost OF Living Allowance

12. Emphasis On Cross-Selling
& Repeated Customers

13. Combine the responsibilities
of CREC & CRES
Customer Relations

14. Action Plan
JFS branches to be categorized in two Categories Branch Age and
portfolio size
Categorization of employees

15. Contingency
Introduction of non cash reward system

16. THANK YOU