`Multi-year job packages’ are the latest innovations on the recruitment scene
We are no stranger to long-term benefits such as gratuity and employee pension plans, which companies institute in order to reward employees with mature tenures. Year-end bonuses and incentives such as variable pay are also routine in the case of many job offers. However, imagine incentives that are structured over a period of three or four years, as a part of your joining contract. Sounds inventive, doesn’t it? That’s exactly what some IT and analytics companies are attempting, according to recent news reports, and it does sound like the next leap in the fight against early attrition.
“At the outset, multi-year packages are not yet popular in India these have been used (sparingly) for very senior-level hires or for hires bringing in very niche skills.The benefit to the organisation would accrue only if a certain area needs stability and they feel that this profile is almost irreplaceable or the cost of hiring is way too high.The benefit to the employee is definitive ¬ he knows he is valued and expected to be contributing to the organisation over a period of time,“ says Kunal Sen, senior VP, TeamLease Services. However, reports indicate that such offers are being doled out to fresh graduates, which indicates that companies don’t mind investing a little faith, if it means fewer quitters.“This kind of package can also be termed as `fixed-term’ assignment and provides for a win-win relationship ¬ the company gets the best out of the individual and the individual gets to work in the domaintechnology of one’s passion,“ feels Paneesh Rao, sr VP & head HR, Atos India.
Multi-year job offers are obviously double-edged.Along with the additional benefits also comes the forced commitment on both sides ¬ for the employee, to stick on if heshe wants to take ad vantage of the long-term benefits; and for the employer, to rethink an inclination to dismiss the employee, considering the benefits already accorded to himher. That makes it difficult to classify such offers as better or worse than conventional packages.
However, such offers are not necessarily just about money . Career milestones may also be predefined in the contracts, which means that employees have that much IMAGESBAZAAR more to look forward to.
“This is also targeted towards the generation Y, which is in the constant phase of evolu tion in their interests and ex perience. Careers are provid ed to them as a bouquet of op portunities, each one with the clear learning mediums, mentors and coaches among others,“ explains Rao. In case a candidate who has bagged a multi-year package quits in between or has aspirations to pursue higher studies, there is normally an exit clause linked to a minimum level of performance for the organi sation and a major financial loss if the employee decides to leave.
One thing is for sure ¬ a multi-year package is a good retention tool. “It at least ar rests frequent changes for frivolous reasons or short gains. Such initiatives will gain momentum in times to come,“ agrees TS Krishnaku mar, COO, IKYA Human Capi tal Solutions. “One of the challenges that companies face today is to keep employ ees `meaningfully’ engaged and interested. Multi-year packages linked to `perform ance’ helps retain the `right talent’; not only assuring the employee of long-term career growth but also ensuring that they understand that per formance and achieving measurable business goals would ensure progression,“ concludes Divakar Kaza, president, HR, Lupin Limited.
So, while the industry is still treading carefully, multi year job offers are certainly an innovative solution to the hassle of high attrition.
Source : The Economic times
Date : 17th Dec 2014