2. Benefits
• In recent scenario of “The Great Resignation” there was scarcity of Talent in all industries. The companies were on war wrt winning the Talent. Attrition chokes the productivity of the company and puts
them on the back seat.
• The IT companies were loosing margin due to increasing cost of employees. All these companies need to pay high compensation to retain their employees or hire from the market. The same skills are
costing more than before which is leading drain on profitability and margins. This infighting of talent between companies is helping employees to negotiate harder with the potential employer for their
compensation. Though the cursory look at the situation looks to benefit the employees but in long run it can impact the competitive advantage of the company and of the country to get the outsourced work
to India. This could have lasting impact on the GDP of the country. This would have cascading impact on other industries as well.
• Compensation increase will impact huge to any organization and there is no upper limit to the same. The company can as per its Compensation Philosophy define to be leading pay master and can
decide to pay in the 4th quadrant to the employees. This will push competitors also to raise their pay ranges to retain employees.
• Benefits provide sweet spot to the employees to look for the in addition to the salary. These days Work from Home, Mental Health Coach, Career enhancement programs, Physical wellness of
employees are some of the new age benefits that employees are looking forward to. Benefits though need to be provided to the entire company but it would be utilized by someone who needs it the most.
Though they also cost money as their value is not constant in the eyes of employees. Someone who needs that benefit will value to much more than someone who has not used / cannot appreciate when
that benefit will be used.
• Since the benefits are being provided to everyone would come at much lesser cost then the direct compensation. Also it has an edge that the value can be increased basis how it is communicated vs
compensation for which the value is constant and potential employer needs to just better that of to hire the employees. While benefit if explained well can act like an exit barrier for the employee.
• Company like Make my Trip provides for uncapped Leaves to the employees even by providing the un capped leaves the leaves take by employees has not gone up. This helps the organization to
control the cost at the same time gives mental peace to employee that whenever he / she needs leaves for some purpose it will be granted. Also it promotes Trust among the employees and its manager.
• This adds to the competitive advantage to the Organization. It is said that the companies are on war wrt Talent and talent management practices can help in winning the war. Talent Management /
benefits strategy implemented successfully can enhance employee engagement, higher engagement will lead to higher productivity, higher productivity will lead to better organization performance
leading to better shareholders profitability leading to GDP growth of the country.
