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Using benefits as a Differentiator


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Speaker: Amitav Mukherjee

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Using benefits as a Differentiator

  1. 1. Using Benefits as a Differentiator NHRD Compensation & Rewards Summit
  2. 2. How do you create differentiation Creating experiences Quality & v/s providing Execution facilities excellence Sources of Differentiation Degree of customization Inimitability Disruptive cost advantage as a result of aggregation
  3. 3. When is Differentiation Effective Alignment with the Employee Value Proposition
  4. 4. Aligning Benefits to EVP The ITC Way Proposition HR Implication Benefits Practice•Offer Careers v/s Jobs •Long Term Engagement •Define Benefits Pension Scheme•Build, Invest & Develop Talent •Post-Retirement Medical Benefits•Experiencing role variety •Talent Mobility •Company owned residentialacross locations / business •Flexibility communitiespivotal to building leadership •Remote & Metro •Relationships with educational Locations institutions •Company managed re-location •Dual accommodation for transitory periods•A community of colleagues •Engagement beyond the •Company supported socializationand families work place events and celebrations in residential communities •Reimbursement for consumption of Company products and services
  5. 5. Aligning Benefits to EVP The ITC Way Proposition HR Implication Benefits Practice•Extensive support on matters •Policies that provide for •Company managed medical schemeof employee health the best-in-class care •Unlimited medical support for •Trust based systems employee and family •High Cost, Great value •No loss of pay account health related absence from work•Promote and value ‘balance’ - •Provide opportunities to •Extensive sports facilities at allEmployee wellness, nurture interest outside residential complexes and some officeprofessional development work complexesimprove effectiveness •Company provided Club memberships •Educational Assistance – fee reimbursement, time-off, stipend•Inflation Protection •Company bears the cost •Company provided travel facilities uncertainty •Cashless medicals, on actuals •Housing provided by Company
  6. 6. Aligning Benefits to Human Capital Strategy Externalization Internalization Idiosyncratic Human Core Human Capital D A Capital • Mode: Knowledge work • Mode: Partnership high Relational • HR: Commitment-based • HR: Collaborative - staff based on potential - select on past experience - develop (firm-specific) - develop the relationship - Extensive pay & benefits - evolving scope - Promote flexibility, learning - rewards for ideas - Greater degree of customization - Benefits, if any, limited to - autonomy / self-direction Uniqueness requirements of the job Ancillary Human Compulsory Human C B Capital Capital • Mode: Contract work • Mode: Traditional job Transactional WARNING: These • HR: Compliance-based • HR: Productivity-based general trends - standardize/simple (outsource) - staff based on current skill may not be - focus on rules & procedures - Market wage and benefits appropriate for - narrow scope, hourly pay - Benefits directed to improve low your particular - Benefits limited to statutory productivity circumstances. requirements - focus on ST performance - mistakes above the water lineLepak & Snell, 1999 low Strategic Value high
  7. 7. Thank You