c&b survey

The Gallup-Businessworld Compensation & Benefit Study 2006

Survey Report

By

Shwetabh Jha

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CONTENTS EXECUTIVE SUMMARY............................................................................................................. 3 RESEARCH METHODOLOGY ................................................................................................... 4 EMERGING CHALLENGES FOR HR LEADERS.................................................................... 9 COMPENSATION AND BENEFIT IN PERSPECTIVE ......................................................... 12 COMPENSATION STRUCTURES TODAY.............................................................................. 23 PERCEPTION OF CURRENT COMPENSATION & BENEFIT POLICIES........................ 28 EMERGING TRENDS IN COMPENENSATION & BENEFITS ........................................... 33 ANNEXURE................................................................................................................................. 37

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Section 1

EXECUTIVE SUMMARY This is the second year of publication of the annual Gallup-Businessworld Compensation and Benefit study. The aim of this study, besides identifying pay-scales across levels for select industry sectors, is also to understand how aspirations and expectations of white-collar employees are shaping up through the years. The study has therefore been conducted in two separate legs- the Employee Leg and the HR Head leg, both of which involved both qualitative and quantitative research. Gallup studied Salary packages across sectors. The IT sector leads by miles when it comes to salary packages offered at the Entry and Junior levels. It is at the Middle level that the churn really happens. While IT by far continues to lead when it comes to salary packages, Telecom comes a close second. At the Senior levels, it is Telecom which offers the highest salaries with IT coming next. Despite talk about the emerging retail sector, the industry is the lowest pay-master among all sectors studied. It is BPO however, which offers the biggest salary jump upon promotion fromJunior to Middle and Middle to Senior Management. Increments upon promotion are comparatively small in the Manufacturing Sector. The good news is that HR decision-makers of leading organizations have their finger very much on the pulse of employee opinion when it comes to factors, which attract talent to an organization. Compensation is critical but what is more important is Career Growth and learning Opportunities. Corporate Image goes far beyond an attractive package. HR Managers are aware of the need to package the organization as a desirable place to work. As an HR Leader put it- Corporate Image is not just about how we come across in our campus placements or if we pay top dollar. “It is also about what an employee goes back and tells his spouse about his day at work. It is our effort that no employee ever needs to say ‘oh lets not talk about work please’ when he is with friends” Compensation is more of a hygiene factor but an important one. This is something that both, employees and HR Managers are in agreement with. Overall, employees were appreciative of the trend towards performance -based pay, much more than HR Managers gave them credit for. They, however, felt there was scope to innovate around compensation structuring especially given the changing social (increasing number of women in the workforce,) and economic conditions (Market yielding higher returns than PF) in the country. Employees also wanted more flexibility and more say in how their salaries were structured. Contrary to HR Manager opinion, they did not consider Car schemes more important than retirals. They viewed ESOP’s with cautious optimism, seeing ESOP’s as attractive, yet preferring a spot payment to an equal amount in ESOP’s. Very much like last year, Infosys, the Tata Group and Wipro were perceived to have the best compensation and benefits policies.

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Section 2

RESEARCH METHODOLOGY

Context of the Study: The Gallup-Businessworld Compensation Survey aimed to benchmark current practices in the area of Compensation and Benefits and understand how Organizations are effectively using Compensation and Benefits as a vehicle for enhancing productivity and organizational excellence.

Objectives: The broad objectives of the study were

• To understand emerging trends in the field of compensation and benefits. • To understand the top management view of the evolving expectations of employees and

the effectiveness of existing practices in place in terms of boosting employee engagement and enhancing organizational effectiveness.

• To identify best practices in the area of compensation structuring and employee

engagement measures. • To understand the top management view of linkage of compensation and benefit

practices with business drivers.

• To put compensation and benefits in perspective with other tools at the disposal of an organization and study emerging trends.

• To benchmark current practices in compensation and benefits across industries, levels

and functions within organizations.

• To understand changing expectations on compensation and benefits from an employee’s perspective

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Research Design: In order to present an unbiased perspective of Compensation & Benefit practices the study was designed to include both employers and employees. HR managers/ Compensation managers were considered representatives of the employer viewpoint. Research was conducted in two phases -Qualitative and Quantitative. The qualitative phase was largely exploratory involving Focus Group Discussions, In-depth one on one and telephonic interviews. The purpose of this phase was to identify potential trends and provide inputs towards designing an instrument for the quantitative phase. The quantitative phase involved administering semi-structured questionnaires. The objective was to validate inputs gleaned from qualitative research and address the survey objectives stated above. Objectives of the Qualitative Phase:

• To understand emerging trends in the field of compensation and benefits. • To understand the top management view of the evolving expectations of employees and

the effectiveness of existing practices in place in terms of boosting employee engagement and enhancing organizational effectiveness.

• To identify best practices in the area of compensation structuring and employee

engagement measures.

• To understand the top management view of linkage of compensation and benefit practices with business drivers.

• To put compensation and benefits in perspective with other tools at the disposal of an

organization and study emerging trends.

• To benchmark current practices in compensation and benefits across industries, levels and functions within organizations.

• To understand changing expectations on compensation and benefits from an employee’s

perspective

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To get a larger perspective Gallup and Businessworld identified certain Industry sectors as focus areas.

o Manufacturing, o Pharmaceuticals, o Telecom, o Financial sector (Bank/Insurance), o IT, o BPO/ITES o FMCG o Retail o Consumer Durables

Within each sector, organizations which satisfied all of the below mentioned criteria were identified as targets for the study on the basis of the following Broad Guidelines

o Reputation as an employer of choice o Reputation for having groundbreaking people practices o Profitability and position in the market

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Sampling Plan: The sample distribution was as follows. Mfg. Phrama Telecom FMCG Fin. IT BPO Retail Consumer

Durables Total

Qualitative Phase FGDs (Employees) 1 1 1 3

Depth Interviews (Employees)

4 5 5 5 5 5 5 5 5 44

Depth Interviews (HR Heads)

2 2 2 2 2 2 2 2 2 18

Quantitative Phase Semi-structured interviews (Employees)

71 87 80 77 82 88 78 84 84 731

Semi-structured interviews (HR Heads)

6 4 4 5 3 6 5 7 6 46

As is described above in each industry sector, across organizations, HR managers and Employees were met. The employee population being large and non-homogenous, the research was designed to ensure adequate representation of functions* and levels* across sectors. NOTE: Functions and levels were defined as Functions: Front line = Sales and Service

Line = Production/Manufacturing Support = HR, Finance and Administration

Levels: Entry level

Junior Management, Middle Management, Top Management

Majority of the organizations selected for survey featured amongst the top 10% paymasters in their respective industries; 87% were amongst the top 20% (as per the perception of the employees covered).

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HR Managers included in the study belonged to leading organizations like

Manufacturing Pharma Telecom Financial IT BPO/ITES Tata Steel

Tata Motors Maruti Udyog Limited,

Eicher Motors, Hero Honda,

M&M

Ranbaxy Wockhardt,

Pfizer, Dr.Reddy's laboratories

limited, Biocon, Eli Lily

Avaya Global Connect, VSNL Bharti,

Hutchinson Telecom East Limited, Idea

Cellular,

Bajaj Allianz, Kotak

Mahindra ICICI,

Birla Sunlife, ABN AMRO,

Aviva, Standard Chartered

Flextronics, Wipro

Infosys, TCS, Satyam, Wipro Technologies,

HCL, STM

Genpact, IBM Daksh

Accenture, Sutherland, HCL BPO,

Convergys India Services Private

Limited

Employees contacted for the study belonged to leading organizations in the above- specified sectors.

NOTE: 1] All Employees who answered the survey had spent more than 3 months in their respective

organizations. Over three fourth of the respondents had previous work experience, majority of them in the IT and Financial sector.

2] 35% of the employees were Graduates, 23% Post-Graduates, 21% were MBAs and 10% had

professional qualifications like Engineering/Medicine.

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Section 3

Emerging Challenges for HR Leaders Attracting and retaining top-drawer talent The demand-supply equation for talented professionals has heavily skewed in favor of the former. As a result of this, retention has emerged to be a major challenge for HR professionals and line managers across the sectors of industry. Unlike in yesteryear, the war for talent is not confined to any particular sector of industry as professionals, especially those with 3 years of more of experience are moving across sectors. As a matter of fact, “switching within the same sector is now seen as “retro” and is generally confined to domain specialists and employees at the entry/junior levels.” This is an especially formidable challenge for the Manufacturing sector. While this sector is competitive at the junior/entry level in terms of compensation offered to freshers, it simply can’t keep up with the new economy sectors like Telecom and IT when it comes to matching salaries at the higher echelons of the management hierarchy. This is the sector where compensation is proving to be a major roadblock in retaining talent. Mr. AM Misra of Tata Steel however has a slightly different take on the issue “this is one of the biggest myths going around. Employers need to concentrate on the total package which includes growth, the organization culture and development of individuals. At Tata Steel, while we believe in paying for retaining critical talent, compensation if you ask me is not a major issue. We have been attracting and more importantly retaining the best talents at all levels. What sets us apart is the challenging opportunities we provide (as distinct from normal job scenarios) wherein each employee is encouraged to nurture his professional aspirations. It is wrong to consider that employees today are not loyal ; rather it is important to create an ambiance of trust, openness and transparency wherein the employee feels secured in the belief that the Company lives up to the promises made. Perhaps a true vindication of this is the fact that today we have an attrition rate of 5% when the industry norm is around 10%.” What is the future of the Managerial Talent Pool in India?

17%

63%

4%13%

0%

20%

40%

60%

80%

100%

Most attractivedestination for the best

managerial talentworldwide

Home to the bestmanagerial talent

worldwide

Need to look to othercountries to meet it’s

demand for managerialtalent

Struggle to meet itsdemand for managerial

talent

In the coming 5 years, which of the following statements do you think would most apply to India?

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HR Heads seem to be extremely bullish on India as far as the future outlook of the Talent pool is concerned. A sizeable section (13%) however are worried about the Brain Drain phenomenon. Cross-cultural integration With Indian companies rapidly expanding footprint across the globe, cross cultural integration will be among the biggest challenges that HR Leaders face in the times to come. “ Global integration is no more a growth dimension, it is a survival imperative. We need to go where the markets are, where the opportunities are, where the efficiencies are. Going forward, we are looking at an integration strategy. While operations is one aspect of it, the strategy is 90% people centric” says Mr. Misra. “A global outlook and cross-cultural adaptability are among the key competencies that we are looking for in our leaders of tomorrow.” Mr. Misra is of the opinion that “ in our quest for international acquisitions, we need to make sure that we don’t lose what is unique to Tata Steel- employee centricity, a belief in values, ethical conduct, operating efficiency and care and concern for environment and society. Whether in Singapore or South Africa, we need to make sure we align all our employees to the values and operating principles of the Tata group” Mr. Mehta, on the other hand contends “if you ask me the nationality of Genpact, I will say that the question is irrelevant. We aspire to be a global player in every sense of the word and one our key strategic thrust is towards developing local leadership in all locations that we operate in- India, China, Mexico or Europe” Building a leadership pipeline “If you ask me the single most worrying trend that I see today, it is the job hopping that we are seeing among youngsters of today. By the time these people have 6 years of experience, they have had tremendous width in terms of exposure but not enough depth. If this trend continues, we could be looking at a leadership crisis another 10 to 15 years from now.” Says Sanjay Bhargav of Marico. According to Mr. Jha “ make that 10 years. We are already looking down the barrel. Its happened in Thailand- they have a booming economy but no leaders to drive it. Is has led to tremendous spare capacity” “The answer” according to Dr. Sangram Tambe of Tata Motors “lies in homegrowing talent. We at the Tata Group have always believed in it. Let me tell you, in it’s quest for readymade talent, corporate India is borrowing against it’s future” Sanjay Singh of Whirlpool however has a different take “ at the end of the day, it does not matter if India has the talent or China has the talent as long as India is an attractive talent destination. We are likely to seen a huge influx of expatriates in the coming few years. “ Ensuring work-life balance Work-life balance has been the first casualty of the pressure packed working environment of the corporate world today. Some organizations like Avaya Global Connect actually have work-life balance as a stated corporate value. Employees are expected to demonstrate how they tie in corporate values while achieving objectives. This is a prerequisite to promotion in some of the forward-looking companies. A lack of work-life balance has been found to drastically affect productivity levels and quality of working conditions for most employees. Many organizations have been trying to enforce this through a series of measures.

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Organizations recognize the need for employees to unwind and spend time with their families. Companies like Eli Lily have a scheme where, upon meeting certain criteria of performance, an employee, regardless of grade gets to pick a location (from a basket of national and international locales) for an all-expenses-paid family holiday. This has emerged to be among the more popular perks in the New Economy organizations Building work-force capability To adequately equip and enable the workforce to improve performance is also an emerging challenge faced by HR Leaders, especially in view of increased competition in the marketplace. Companies like Ranbaxy are investing heavily to upgrade skills of their workforce and even offer incentives and career breaks to acquire higher qualification. For New economy industries identifying skills, which will be ‘hot’ in the future, acquiring and internalizing them is an essential part of the race to stay ahead. In some organizations once future talent is identified and brought into the organization “Talent Transfer” is encouraged. By linking compensation to acquiring the new skill existing employees are motivated to constantly upgrade. In the process work-force capability in enhanced. Enforcing corporate vales and operating principles In the age of cut-throat competition and considering that numbers are taken as the sole measure of performance, getting employees to live corporate values and operating principles is a challenge before HR Leaders. Ensuring quality and customer satisfaction It is a buyers market and customers are becoming increasingly demanding. For HR, employees are the customers and ensuring quality and transparency is paramount in all business processes that the organization undertakes HR as a function is moving away from being a support function to the fulcrum of business strategy. Customer Satisfaction is therefore as much a responsibility of HR as that of any other function. Customer Satisfaction is built in as a metric in the performance scorecard of all associates in most organizations and carries a heavy weightage. Promoting innovation Organizations need to innovate to stay ahead in the race. To facilitate a culture of learning and innovation is an emerging challenge for the HR leaders of today. Some organizations have a separate Business Unit e.g. Centre for innovation & New initiatives. Employees across the organization, depending on their performance and aptitude are nominated to work in the centre. The nomination is highly coveted and the nominee is better compensated.

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Section 4

Compensation and Benefit in perspective

Compensation put into perspective is nothing more than a reinforcement of management techniques and a reflection of the company’s values. A good compensation package will fail to be effective unless backed by suitable managerial input. Factors like job content, career growth prospects, organizational climate, empowerment and autonomy, learning opportunities and the employee’s realization of her self-perceived potential are as important, if not greater determinants of an employee’s satisfaction and morale. The companies today in order to compete, have to strike a fine balance between bottom-line orientation and genuine concern for the employee. To keep an employee happy and productive and to constantly provide avenues for her to hone and make optimum use of her skills and competencies is a challenge that compensation managers will constantly have to deal with. According to Piyush Mehta of Genpact- “ Industry leaders like Genpact carry the onus of setting trends for an economy sector. If we get into the top-dollar game, trust me India will lose it’s price advantage sooner than you think. We believe in pay for performance and have a very aggressive incentive plans. Where base salaries are concerned, we have taken a conscious decision to be somewhere near the median mark.” This quote is fairly representative of how HR leaders feel about Compensation and Benefits as a tool to attract and retain top-drawer talent, build workforce capability and drive performance. Compensation at the end of the day is seen as a hygiene factor- if you pay peanuts, you get monkeys but paying top dollar will not necessarily get you top guns unless you have compensation practices seamlessly aligned to managerial intent. HR leaders feel that how much you pay is not as important as how you pay and what you pay for. According to Mr. BN Jha of Avaya Global Connect “many of our competitors have innovation as a stated value but look at their PMS, the entire variable pay is based on meeting financial targets. We, on the other hand are competitive because we pay for what we value. Our Compensation practices reinforce our values.”

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COMPENENSATION & BENEFITS AS A TOOL TO ATTRACT TALENT

Talented people are the key resources for any organization in any sector. Given the upswing in the economy, the plethora of career alternatives and employment opportunities, attracting the right talent has emerged as one of the big challenges for HR managers of today

How are Employers addressing this challenge? What do HR Managers perceive as being important to employees? What factors do they emphasize on while ‘selling’ positions to potential employees?

54%55%

11%14%

24%16%

4% 3% 1%7% 4% 2% 3%

0%

10%

20%

30%

40%

50%

60%

70%

Career Growth andLearning

Opportunities

Compensation Brand Name of theOrganization

Training Programs Talent pool in theorganization

Prospects ofOverseas

assignments

Organizationalculture

Company policiesand procedures

HR ManagersEmployees

Critical Factors in attracting talent to an organization

The chart maps employers and employees perceptions of key attractants to an organization. It is evident from the above that HR Managers have their finger on the pulse when it comes to the key factors behind attracting talent i.e. Career Growth &Learning opportunities followed by brand equity of the organization; Compensation and Benefits comes in a distant but significant third. The message is clearly and well understood all across-money matters but not at the cost of growth. Factors like a professional working environment and a caring employer matter more than a fat paycheque when a prospective employee looks at options. The good news is HR managers of India’s leading companies are aware of this sentiment. Surprisingly, job content does not seem to figure as a factor for employees when choosing a career. One line of thought regarding this, as expressed by an HR head- “Job content has today become a hygiene factor. Everyone in an organization- Top Management, Line, HR is only too aware of the need for enrichment. Look at the Telecom industry- is it anybody’s case that say, a training role in company X is different from a training role in company Y? Employees today carve out their own roles in an organization.”

However, in the pharmaceutical and financial sector and across brand management and production, employees rank compensation and benefits in second position and brand equity of the organization as a distant third. Compensation is also relatively more important to employees in functions like customer relationship and HR.

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Policymakers would be interested to know that employees in the pharmaceutical sector especially entry level employees) attribute significantly lower importance to Brand Equity (10%) while employees in Telecom (especially entry and junior management level employees) attribute significantly higher importance to Brand equity of the organization (18%). The writing in on the wall for HR managers to see- Compensation may be important; but if one wants to attract the best talent, the Organization needs to package itself as an attractive destination where employees have opportunities to acquire new skills, hone existing ones and work in an environment that’s professional and conducive. HR Heads seem to have taken cognizance. Only 11% of the HR Heads interviewed admitted to being in the Top Dollar Game. Most organizations(46%) believe in paying competitively and stressing on high rewards for good performance. Another large section (37%) say they believe in paying competitively and stress on career growth opportunities. How much does an MBA matter?

An MBA is an overwhelming favorite when it comes to preferred qualification for recruitment at entry level positions. 87% of HR Managers said that they would prefer an MBA for recruitment at the entry level for the HR Function. The corresponding figures for Marketing and Sales were 74% and 51% respectively. Like last year, this year too, MBAs don’t seem to enjoy much advantage in recruitment to the Finance function. In Finance, specialist Post-Graduates like CAs are preferred. The MBA however seems to have lost it’s glitter when compared to last year. Compared to 75% last year, only 67% of the HR Heads covered this year say that a premium is offered to MBAs over others.

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The Expatriate Story

Boundary-less effectiveness is the new credo of organizations operating in India. The expatriate influx in India is a trickle but is likely to go up significantly in the coming few years. At the entry level, 20% of the organizations studied are considering hiring expatriates, as many as 40% of the leading companies in FMCG sector and a whopping 50% in the IT sector are considering the option. The corresponding percentages for the Middle and Senior levels is 28% and 46% respectively. In the Middle Management, it is again the FMCG Sector which is most open to hiring expatriates with 80% of the companies studied considering the option. At the Senior level, it is the Telecom sector which is most open to the idea of hiring expats (100% of companies studied are considering the option) followed by Manufacturing and IT sectors where 67% of the participating companies are game to having foreigners occupy Senior Management positions. COMPENENSATION & BENEFITS AS A TOOL TO DRIVE PERFORMANCE & BUILD WORKFORCE CAPABILITY The graph represents critical factors that drive performance from an employee perspective As is evident Compensation and Job content are critical across all industry sectors, with compensation being highest at 22% and Job Content coming a close second at 21% on a total basis. This trend is maintained in Frontline functions, reversed in Support functions (Job content-26%, compensation- 20%) while for Line functions compensation is ranked third (Job content-23%, Working environment -20% , compensation- 15%)

Compensation Training PerformanceManagement

System

Talent Fit Job Content W ork-life balance W orkingenvironment

Recognition Pride in work

Total Manufacturing IT BPO/ITES Pharmaceutical

Telecom Financial Sector Consumer Durables FMCG Retail

Critical factors that drive performance across sectors

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The BPO Sector seems to be doing something right in aligning the PMS to developmental needs of employees as employees feel that the PMS is almost as vital as Compensation in building workforce capability. Senior Management rate Job content as primary and Compensation much less important, but still at second place. Trends indicate that the importance of job content increases at higher levels of the management hierarchy. So Compensation and Job content are key- do HR managers understand this? Is their perception of what drives performance in sync with what employees say?

23%

16%

9% 11%14%

3%

10% 9%5%7% 7%

22%

28%

15%

4% 4%7% 7%

0%

5%

10%

15%

20%

25%

30%

Compensation Training PerformanceManagement

System

Talent Fit Job Content Work-life balance Workingenvironment

Recognition Pride in work

Employees HR Managers

As is evident there is dissonance- what HR managers see as key (Talent Fit and Performance Management System) feature only in 4th and 5th positions in an employees mind. To build workforce capability managers say they are currently focusing on talent fit and job content. But considering that 76% of employees feel (either “agree” or “strongly agree”)that a higher pay package would motivate them to work harder towards organizational goals, one wonders- is the importance of compensation being underrated? Compensation was the most important determinant of job satisfaction for 72% of employees (“agree” or “strongly agree”). The message is clear- compensation needs to feature more prominently in strategies aimed at driving performance and building workforce capability.

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ROLE OF COMPENENSATION & BENEFITS IN ARRESTING ATTRITION

It is not enough to attract the right talent, it is equally important to retain it. In order to retain talent HR Managers need to understand reasons for attrition and factors contributing to the same. How bad is the attrition problem? Manageable for the most part. Expectedly, it is at a high 43% in the BPO sector. The following table gives the figures in percentage.

All Industry Mfg. IT BPO /

ITES Pharma Telecom Financial Sector

Consumer Durables FMCG Retail

Attrition rates (2006) 21 13 15 43 18 18 27 16 19 25

Attrition rates (2005) 17 12 11 40 16 22 18 NA NA NA

As can be seen, the attrition menace in the BPO sector has become more menacing since last year. In the Financial Sector too, the attrition rates have gone up significantly to hit the danger mark. Expectedly again, Marketing and Sales functions see the highest attrition in all sectors. Retaining Technical people is a challenge in the IT Sector. So why do employees leave? The chart below reflects employee speak

22%

48%

8%2%

8%3% 2%

1% 2%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Compensation LearningOpportunities

Job Content Immediatesupervisor

Lack ofrecognition

Employees(Base: 730)

Critical reason for attrition ( Employee perspective)

% R

espo

nden

ts

As is evident career growth opportunities are the primary reason followed by the lure of better compensation.

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Is this true across sectors? Compensation seems to be most important in the BPO sector. Other sectors largely reflect similar trends. When comparing across levels, senior management (12% named it as a factor) attributes more importance to job content and work-life balance as compared to junior management (6% said that it matters). So do HR Managers and employees see eye to eye on this one? Do HR managers really understand why employees leave?

69%

25%

51% 53%

11%

6% 4%

20%

5%4%

13%

2% 1%

7%2%

0%

10%

20%

30%

40%

50%

60%

70%

Compensation Career Growth LearningOpportunities

Talent Fit Job Content Work-life balance Immediate supervisor Familyresponsibilities

Location ofworkplace

Company policies &procedures

HR Managers Perspective (Base:45)

Employees Perspective (Base: 142)

Reasons for attrition (Entry Level)

72%

24%

61%

46%

9% 8% 7%

2%

17%

8%

2%

11%

3% 1% 2% 1% 2%0%

10%

20%

30%

40%

50%

60%

70%

80%


Talent Fit Job Content Work-life balance Immediatesupervisor

Familyresponsibilities

Lack of recognition Location ofworkplace

Company policies& procedures



Reasons for attrition (Junior Management)

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HR managers seem to think that entry level employees are easily lured by money- but employees at this level claim to differ – they say career growth and learning opportunities are the key enticers, compensation is a distant second. Should this be believed? Considering that a significantly higher number of employees (10% entry level employees as opposed to 3% -Junior mgmt, 5% -middle mgmt and 0% -Senior mgmt.) said they would jump ship even for a hike of less than 20%, maybe employee speak at this level needs to be taken with a pinch of salt. At a Junior management level also, HR managers underestimate the importance of growth and learning opportunities- to employees it is clearly more important than compensation. This is probably true given the fact that majority of the employees at this level said they would job hop only for salary differentials of 30-40%

49%

17%

58%

51%

9% 7%16%

2%

22%

7% 9%

3%

16%

2% 3%

13%

4%

0%

10%

20%

30%

40%

50%

60%


Talent Fit Job Content Work-life balance Immediatesupervisor

Familyresponsibilities

Lack ofrecognition

Location ofworkplace

Companypolicies &

procedures



Reasons for attrition (Middle Mgmt Level)

22%20%

40%37%

9% 10% 11%

31%

12%18%

6% 7% 7%4%

16%

7%

0%5%

10%15%20%25%30%35%40%45%50%


Talent Fit Job Content Work-life balance Lack of recognition Location ofworkplace

Company policies &procedures



Reasons for attrition (Senior Mgmt Level)

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At the middle management level, HR managers seem to have better understood the pulse of the employees- their understanding follows the same trend as employee perception although the importance attributed to parameters is different. Senior managers clearly state that compensation is a distant second, this verified from the fact that almost none of them would consider a job switch for a pay hike of less than 20%. Majority would only move if the salary differential was above 40%. However, HR Managers give a higher billing to Job Content over Compensation for Senior Management. They are clearly underestimating the importance of Compensation for executives at this level. Thus contrary to popular opinion, it is Career Growth and not Compensation, which prompts employees to jump ship. Given this, spot payments and renegotiated salaries (even deferred payments) can be rather ineffective. If organizations want to retain talent, they need to ensure that their high potential employees don’t feel stagnated. Yet compensation is important as is evident from above, so it is important for HR managers to understand how much of a salary hike would make an employee jump ship? Although close to 40% of the employees say 30-40% hike in pay, responses vary across levels, sectors and functions

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The below mentioned charts give an idea about the same

42%

11%

36%

31%

13%

30%

7%

25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Upto 20% 20-30% 30-40% Above 40%

HR Managers(Base:45) - Mean% 21

Employees(Base:142) - Mean % 32

Entry Level

11%

4%

47%

29% 29%32%

11%

33%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Upto 20% 20-30% 30-40% Above 40%

HR Managers(Base:45)-Mean% 29

Employees(Base:292)-Mean % 34

Junior Management

% Increase in Salary that will make people shift their jobs % Increase in Salary that will make people shift their jobs

7%4%

30%

23%

41%

30%

20%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Upto 20% 20-30% 30-40% Above 40%

HR Managers(Base:44)-Mean% 32Employees(Base:215)-Mean % 36

Middle Management

7%4%

9%

26%

41%

26%

39%

44%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Upto 20% 20-30% 30-40% Above 40%

HR Managers(Base:44)-Mean% 36

Employees(Base:82)-Mean % 36

Senior Managemnet

% Increase in Salary that will make people shift their jobs % Increase in Salary that will make people shift their jobs

HR Managers appear to have underestimated the salary differential which will cause a person to change his/her job across levels.

22

Across Sectors significantly higher number of employees in BPO/ITES (especially frontline employees) said they would consider a job switch even for a less than 20% hike in pay, while in the IT sector majority of the employees say they will consider a switch for a salary hike on 30-40%. If one were to compare sectors to judge the ‘priciest’, it would have to be IT- significantly higher number of employees here said they would jump only for a salary hike of more than 40%.The ‘pricier among the priciest’ were junior management and frontline employees in the IT sector. Across functions, Brand Management and HR clarify that they would not consider a switch if salary difference was less than 20%. Employees working in Customer Relationship, though would jump largely for a 30-40% pay hike. Interestingly people working for companies which rank amongst the top 10% paymasters seem to be the most flighty - a significantly higher % said they would jump even for a raise of less than 20% as compared to those who work for companies which are in the bottom 50% paymasters. Where do employees leave for? IT was the hottest destination for most respondents (30% want to move there), followed by the financial sector (21%) and telecom (16%). BPO/ITES at 12% ranks lower than manufacturing (14%); Across Functions production/manufacturing seems least vulnerable to attrition, Finance, Training, legal, Quality, Actuarial less so. As expected attrition in Marketing& Sales and HR is comparatively higher.

23

Section 5

COMPENSATION STRUCTURES TODAY The following table indicates the payscales across sectors of Industry. These are monthly salaries in Rupees (gross figures).

Level All Industry Mfg. IT BPO /



Entry Level ‘06 16,755 17,200 28,840 12,347 12,500 18,333 18,500 17,333 14,575 10,571

Entry Level ‘05 17, 912 20,861 18,333 11,500 17,555 22,972 16,667 NA NA NA

Junior Mgmt ‘06 33,006 27,700 60,317 28,238 43,500 32,296 41,000 33,333 31,333 16,452

Junior Mgmt ‘05 32, 672 29,671 33,333 25,583 31,111 48,611 28,958 NA NA NA

Middle Mgmt ‘06 67,249 42,500 1,17,981 49,771 86,200 1,00,722 87,500 62,500 72,900 33,143

Middle Mgmt ‘05 70,380 45,464 65,556 57,500 81,667 83,333 84,167 NA NA NA

Senior Mgmt ‘06 1,64,976 1,57,500 2,14,758 1,15,536 2,20,000 2,57,778 4,20,000 1,44,167 1,63,300 60,238

Senior Mgmt ‘05 1,51,345 1,39,959 1,15,556 1,35,000 1,50,000 1,47,000 1,99,167 NA NA NA

IT clearly comes across as the top paymaster overall. It is the market leader at the Entry, Junior and Middle levels of the Management. At the Senior levels, however, it is is the Financial Sector which pays Top Dollar. Manufacturing is competitive only at the Entry level. According to a fresh IIT Graduate working in a leading Manufacturing Organization-“Manufacturing is not glamorous but if you really want to learn, this is where every engineer should begin his career. Even on Campus, the really bright ones go for the bigger manufacturing firms, not-as popular perception will tell you, to IT. For a fresher, in-fact the Manufacturing biggies pay better. The good ones, however don’t stay-they want to go in for higher studies.” This however does not explain why this sector has been successfully able to lay hands on some high profile talent at the very top level. As Mr. BN Jha of Avaya Global Connect, who has earlier worked with the Tata Group, puts it- “what manufacturing offers besides a career is a lifestyle. Something we here are trying to emulate. Besides, look at the challenge- you are dealing with thousands, not hundreds of people and such a heterogeneous profile- from double PhDs to matriculates. Where else do you get to handle complexity of this magnitude?”

24

What happened to BPO? “Well, what about BPO? We create jobs. Meaningful jobs. We never claimed we create millionaires.” Says a BPO HR manager rhetorically. Enough said. The figures tell the rest of the story. BPO is not where the money is. BPO is where the jobs are. The story of the Financial Sector The Financial Sector has seen the greatest spurt in Salary levels since 2005. The sector is just coming on its own, with salaries heading northward across levels. The other Sunrise sector- Pharmaceutical The trend is roughly along the same lines as the Financial sector- conservative at the Entry and level and competitive at all other levels. And arguably for the same reasons- “ We visit A-tier B schools but that’s not where we hire from in bulk. At the entry level, we need feet-on-street people. These are exceptional people with the right attitude-they believe in working hard and are highly result oriented. Once they have proved their merit, there are rewards galore.” avers an HR executive. Retail- The new BPO The retail sector seems to have a lot of parallels with the BPO sector where people issues are concerned. Namely- high attrition, huge headcount, blinding growth rates, low entry barriers and low salaries. The odd Rajeev Karawal aside, the pay-figures do not seem encouraging at all. Are we looking at an upward curve in the coming few years? “Unlikely” says the HR Head of a Retail Major. “We need good people but if you look closely, there are no hot-skills which will really jack up salaries. It’s a new sector where all the learning will be from scratch. The challenges for retail in India are going to be of a different nature if you compare it with the rest of the world. We may be looking at a younger lot of people for the Senior Management- people who don’t come with baggage of experience or set paradigms” Consumer Durables and FMCG- Yesterday’s sectors? An emphatic no. “The market is glutted all right but you can never count these sectors out.” Says Pankaj Bhargav of Marico. “There is some consolidation happening in these sectors which has led to jobs being cut. But trust me, we are looking at an upswing sooner than you think.”

25

How much will Salaries rise? Salaries are expected to rise as follows at various levels of Management in the next 12 months




Entry Level 16 13 20 18 15 13 15 12 13 21

Junior Mgmt 17 17 17 15 15 13 15 15 15 24

Middle Mgmt 18 17 18 15 20 20 12 18 15 25

Senior Mgmt 17 15 15 12 20 18 12 18 17 24

Retail clearly emerges to be the leader here with 20% salary jumps across levels. 2007 will see salaries going up but it won’t exactly be a bonanza. Jobs will created but those looking for quantum jumps in their salary package are likely to be disappointed. As an HR Leader put it- “We are being cautious. We will increase headcount but there’s no point going overboard to get people in. We don’t want a situation where we cannot justify our wage bill and have to retrench. If we bring in new people at higher salaries, we will have to ensure parity for existing employees. This could snowball into something we had rather avoid” There is always curiosity about who is earning how much, which function/specialization pays more, does the differential hold true across levels etc.

The following table helps put all this in perspective (data only indicative) Assuming a base salary of Rs.100 for HR at leach level, salaries pan out as follows

HR Marketing Sales Technical Production/ Manufacturing Training Finance

Junior Management 100 104 102 95 85 91 94

Middle Management 100 109 110 100 91 91 97

Senior Management 100 118 112 98 101 95 105

As can be seen, HR today does not fetch much premium as a functional discipline. No surprises here, Marketing and Sales are the highest paid functions. The scenario is however likely to undergo a sea change. In the next 5 years Marketing, HR and Quality are the functional disciplines likely to command a premium.

26

Within HR specific skills, which will command a premium, include:

- Training, Recruitment, Compensation and Competency mapping at Junior management level

- Performance Management, Competency mapping, Organizational development, Compensation and Training at Middle management level

- Organizational development, Performance management, Competency Mapping at Senior management level

Within Marketing, specific skills, which will command a premium, include:

- Sales promotion management, Marketing communication, Supply chain, Market Research at Junior management level

- New Product development, Market Research, Supply chain at Middle management level

- New Product development, Market Research at Senior management level Although HR may not be coveted at senior levels, Marketing and Technical will certainly command a premium. In this age of job-hopping, does sticking to an organization make sense? Yes, if figures are to be believed. A post-graduate who is a good performer can expect an increase of 117% over 5 years if he sticks to his first job. In other words, he can more than double his starting salary. Even average performers who are simple graduates can expect a 65% increase in salary. Does qualification matter? In one word-Yes. Though some organizations claim that qualifications are only looked at the time of recruitments and subsequently, it is performance, which matters, post-graduates are likely to receive higher raises as the table below indicates.

Good Performer Average Performer

Graduate 97 57

Post Graduate 120 72

Engineer 117 74

27

How much does salary go up upon promotion? The following table gives the percentage increase upon promotion in various sectors of the Industry.




Junior-middle management 29 21 28 50 13 25 29 25 28 41

Middle-senior management 35 29 28 44 38 31 38 25 33 54

As can be seen, the BPO sector offers maximum jump upon promotion. Upon promotion from Middle to Senior level, it is Retail which offers the biggest jump. The message for middle level executives looking at a jump- Retail is where to head if it is money one is looking for. Raises are conservative in the Manufacturing Sector. However, it continues to be a favoured destination for Middle level executives looking for a change. Figures confirm what anecdotal evidence seems to suggest- that employees in the Manufacturing sector have a long wait before they see a significant difference in their financial lot. “ There is a deep sense of stagnation among employees in this sector.” Says an employee with an automobile major. “I see my batch-mate from IIT who works with a Telecom sector driving an Esteem while I still drive an Alto. This, when I started out on a higher package when we passed out. Progress here is very slow but it can’t be helped. There are simply too many levels”

28

Section 6

PERCEPTION OF CURRENT COMPENSATION & BENEFIT POLICIES

Is compensation commensurate with efforts involved? Probably given the bias in the sampling where majority of the respondents worked for organizations which featured amongst the top 20% paymasters in their industry sector, three fourth of the respondents felt they were fairly compensated for their efforts. Employees asserted that a satisfactory system to reward good performance existed in their organization.

69%78% 76%

68%76%

85%

74% 74% 76%

0%

20%

40%

60%

80%

100%

Manufacturing IT BPO / ITES Pharmaceutical Telecom Financial Sector ConsumerDurables

FMCG Retail

I feel that I am fairly compensated for my efforts by my company

Is compensation competitive? Again being from the top 20% paymasters, majority of the respondents agreed that their salaries were competitive when compared to colleagues at the same level in different companies. Across sectors, this opinion was more pronounced in Manufacturing and Telecom and more pronounced in junior management than other levels

29

56%

74%77%

64% 64%

80%

65% 64%68%

0%

20%

40%

60%

80%

100%

Manufacturing IT BPO / ITES Pharmaceutical Telecom FinancialSector

ConsumerDurables

FMCG Retail

My company is competitive in terms of the salary offered to employees at my level

Is the compensation package flexible? There is scope for innovations around structuring of the pay package as less than a fifth of the employees strongly feel that their pay package offers them enough flexibility to do what they want with their money. Comparatively higher number of employees in manufacturing and telecom strongly assert that their pay package offers adequate flexibility. As pointers to innovate around employee where asked about their specific grouses with regards to their compensation package- the key grievance seemed to be that although the pay package took care of medical needs of self, spouse and children, it did not adequately address medical needs of dependent parents. This was especially true in the BPO/ITES and Manufacturing sector.

65%74% 72%

51%

70%78%

64% 65% 67%

0%

20%

40%

60%

80%

100%


FMCG Retail

The pay package offers me enough flexibility to do what I want with my money

When referring to flexibility in compensation package employees were also perhaps referring to salary structure- given a choice between a higher aggregate pay package which translates into a lower take-home post taxes to a lower aggregate package which is more tax friendly, most employees preferred the latter.

30

Does the package effectively address post retirement needs? There is concern that the current levels of savings and investment may not make it possible to maintain the same standard of living post retirement and provide for medical emergencies like accidents/severe illness post retirement. This concern was voiced across sectors, particularly the Pharma sector.

54%67%

58%

47%55%

74%

49%58%

49%

0%

20%

40%

60%

80%

100%


FMCG Retail

With my current levels of savings and investments, I feel that I will be able to maintain my current standard of living post-retirement

50%65%

56%

39%

55%

73%

53% 51% 51%

0%

20%

40%

60%

80%

100%


FMCG Retail

With my current levels of savings and investments, I feel that I will be able to provide for medical emergencies like accidents/severe illness post-retirement

Is the compensation structure innovative in the context of changing socioeconomic scenario? Only slightly over 50% of the employees felt that their company’s compensation policies are innovative in terms of addressing changing needs of employees in view of today’s social and economic changes (increase in the number of female employees, movement towards nuclear families etc). Employees in Manufacturing were particularly unhappy on this count. However there was good news on the gender equity front- 87% of respondents asserted that there is no discrimination in how men and women are paid in their organization. The scenario is healthiest in the IT and Telecom sectors.

31

Opinion of promotion policies. Employees seem satisfied with this- 78% of employees endorsed that promotions were accompanied by a commensurate hike in pay. Employees also approve that HR leaders are doing a reasonably good job of bringing in transparency into promotion practices (60% of employees polled are of this opinion). Manufacturing fares the worst on this count, financial services significantly better. Manufacturing also scores significantly lower on ‘system to determine salary hikes is fair and objective’. Perception of benefits. The most common benefits across industries seem to be

o Performance based rewards o Health Benefits o Car Scheme o Medical Benefits for spouse and children o Cell phones and laptops o Medical Benefits for dependent parents o Employee referral scheme o Housing Support

The comparatively less common ones are o Credit card o Flexible Benefit Plan o ESOPs o Foreign Trips/ Vacations o Sponsored Family outings

The uncommon ones are o Crèche o Post retirement medical benefits o Paternity leave o Adoption Leave

While ESOPs, Car scheme and Credit card are offered to Middle and Senior Management in most companies, other benefits including Foreign Trips, Housing Support and Employee referral are more universal in scope. From an employee perspective Medical Benefits (87%) Housing Support (67%) and Retirals (57%) are the three most essential benefits. HR managers’ opinions seem to reflect the employees’ viewpoint when it comes to Housing and Medical schemes being important, but they do not consider retirals as employees do- they feel that to employees Car scheme, ESOPs and Flexible benefit plan are as or more important than retirals. Is the dissonance real? Despite the conflict it is evident that while decision makers are focusing on higher order needs- the social security needs of employees are still calling for attention.

32

Today, employees are living longer, living alone and need Social security. Gender roles are getting redefined. Both spouses need to share responsibility. The message is clear- Corporate India needs to be better aware of the changing needs of it’s employees. Among the gripes heard from Employees- that the HR policies are not responsive to the changing socio-economic scene of Corporate India. This is evident from the fact that paternity leave has still not come into vogue. Corporate India has a long way to go to display more sensitivity towards the new trend of nuclear families where fathers need to take time off to support their wives during pregnancy. Creche facilities need to be made available keeping in view the increasing incidences of mothers of children taking up work. Considering that people today are living longer and in the age of nuclear families, post-retirement medical benefits become extremely important. However this scenario will change in the next two years as most of these benefits could come into effect across organizations- most companies who are not offering these benefits currently are considering offering them in the next 2 years.

33

Section 7

EMERGING TRENDS IN COMPENENSATION & BENEFITS

1] Towards performance based pay The credo most leading organizations seem to follow is to pay competitively and stress on high rewards/career growth for good performance- Pay for performance in. Qualitative research had indicated that performance based pay was increasing becoming popular with HR managers and employees. The quantitative phase validated this - 81% of the respondents asserted that this was indeed a noticeable trend. Close to a third of HR managers though expressed concern that ‘pay for performance’ was not going down well with employees- these managers can now relax as a whopping 82% employees are saying that the trend in fact a welcome one. Why? Perhaps because employees understand the monetary benefits and perhaps because employees’ working for organizations where pay for performance exists are significantly more likely to feel that

o My company is competitive in terms of salary offered to employees at my level. o Promotions are accompanied by a commensurate increase in salary

Thus, causing them to view their compensation package more positively. So do employees across sectors welcome this trend? From the above graph it is evident that the trend is welcomed by employees across sectors especially in the Manufacturing industry.

70%65%66%

77%83%

70%67%75%

90%

0%10%20%30%40%50%60%70%80%90%

100%

Mfg. IT BPO/ITES Pharma Telecom FinancialSector

ConsumerDurables

FMCG Retail

Employees who feel the trend is welcome

Perception of performance based pay across sectors

Industry sectors

34

Is Variable pay here to stay? The following table answers the query. As can be seen, the percentage of variable pay increases across levels.

All Industry Mfg. IT BPO /



Entry Level 12 10 5 12 - 13 11 10 10 19

Junior Mgmt 14 11 14 13 - 14 11 13 13 22

Middle Mgmt 17 15 24 13 20 18 14 14 14 25

Senior Mgmt 20 17 26 19 - 25 23 12 16 27

Performance based pay is increasingly becoming popular even among the support functions. The variable component of the pay depends on both individual/team and organizational performance and increases across levels of the management hierarchy. It is also interesting to note that 50% of weightage is assigned to non-financial parameters of performance and “leadership competencies” for incumbents in Senior Management role. There is greater acceptance among employees regarding variable pay and the total variable payout as a percentage of the total wage bill has been increasing over the last 3 years The Retail sector has the greatest orientation towards performance in it’s pay structure. If there are any doubts left, 100% of the organizations studied have a Variable Pay Plan in their salary structure. So, how much do organizations shell out to reward performance? The following table indicates the total variable payout as a percentage of the wage bill over the past 12 months for various sectors. All

Industry Mfg. IT BPO / ITES Pharma Telecom Financial

Sector Consumer Durables FMCG Retail

17 17 20 19 14 18 21 14 14 18

No surprises here, the Financial Sector takes the cake in rewarding performance. According to an HR head of a Banking major-“ A big part of Compensation Package of most associates is at risk and unlike many other sectors, where the variable component is added only to swell the CTC figure, we consistently reward good performance with monetary incentives.”

35

How common is pay for performance? Majority (69%) of the employees polled also said they had a performance based component in their compensation package. The percentage was significantly higher in BPO/ITES and Telecom sectors where 77% and 83% respectively said that they had a Performance Based component in their pay structure. and significantly lower in the financial sector where only 58% said that a part of their pay was at risk. (this is at variance with the opinion of HR Leaders of the Financial Sector as a majority say that Performance Orientation is strongly built into the Compensation Structure). Incidence increased with increase in management level. A significantly higher proportion of experienced professionals had a performance based component in their compensation package as compared to freshers. All companies surveyed had a Performance Pay Plan in their salary structure. Performance based Rewards Rewards are used as a tool for recognition, motivation and sometimes even for attracting and retaining employees. Rewards are fast gaining popularity and the trend is towards providing one time reward/ recognition rather than compensation renegotiation. Many things are rewarded- timely/early project completion, excellent project execution, customer satisfaction etc. Rewards can be in the form of Certificates/Mementos/Cash /Paid holidays/foreign trips/expensive dinners. However unlike what employers would like to believe rewards are not entirely appreciated even by rewarded employees-“ What’s the point of sending me on a foreign trip and making me pay the tax on it?” or “ I was told I would receive Rs. 1,00,000 for my performance, I received only Rs. 70,000, the rest was cut as tax. The company should have borne the tax on this or at least clarified that the award is only Rs. 70,000” 2] ESOP’s on a comeback trail 63% of the employers polled said they currently offer ESOP’s and of those who don’t a third indicated that they were considering offering ESOP’s in the next 1 or 2 years. ESOPs are again flavor of the season among HR Leaders in the new economy sectors of the industry. The exceptional performance of stock markets is a factor behind this. Some lessons have however been learnt from the past and employers are more discriminating while offering ESOPs. Besides, ESOPs will have a higher lock-in period. After the slump in stock markets post 2001, employers and employees had both lost interest in ESOPs. HR leaders however feel that ESOPs are a potent retention tool and also boost performance by giving employees a stake in the organization’s fortunes. HR leaders contend that ESOPs are here to stay. Some organizations offer ESOPs to their best performing employees irrespective of grade, level or function. Other organizations restrict ESOPs to middle and higher management

36

What is the response of employees? Cautious optimism- 59% felt ESOPs were an attractive mode of compensation. The sentiment was reflected across sectors. Senior management was more positive then middle management, junior management was more positive than entry level employees. Perhaps at higher levels of management ESOP’s look more favorable. However given a choice between ESOPs worth 20% of their annual take home or a spot payment of the same amount, more employees (54%) preferred the latter option. This was especially true of the BPO/ITES sector. Employees obviously prefer the solid reassurance of cash in their bank accounts to the lure of notional lucre. 3] Are retirals in or out? There is a reasonable amount of contradiction concerning ‘Retirals’. Policymakers are of the opinion that retirals are a component of the compensation package only because the law mandates it. However 75% of employees perceive retirals as mandatory savings, which are effective in addressing post retirement financial, needs. Despite this faith employee opinion is divided- many (54%) feel that as the market yields more benefits than retirals like pension, the retirals component should be brought down to 15-16% from the current 20% of basic pay. They are clear that a higher take home is preferable in lieu of retirals like PF. However, a growing number of employees demand post-retirement health benefits.

37

ANNEXURE

69%78% 76%

68%76%

85%

74% 74% 76%

0%

20%

40%

60%

80%

100%


ConsumerDurables

FMCG Retail

I feel that I am fairly compensated for my efforts by my company

%To

p2B

ox

75% 77%78%

66%74%

82%73% 76% 77%

0%

20%

40%

60%

80%

100%


ConsumerDurables

FMCG Retail

A satisfactory system to reward good performance exists in my company

%To

p2B

ox

Chart - 1

38

67%65%

70% 70%

0%

20%

40%

60%

80%

100%

Entry Level Junior Management Middle Management Senior Management


%To

p2B

ox

65%74% 72%

51%

70%78%

64% 65% 67%

0%

20%

40%

60%

80%

100%


ConsumerDurables

FMCG Retail


%To

p2B

ox

Chart - 2

Chart - 3

39

54%67%

58%

47%55%

74%

49%58%

49%

0%

20%

40%

60%

80%

100%


ConsumerDurables

FMCG Retail

With my current levels of savings and investments, I feel that I will be able to maintain my current standard of living post-retirement

%To

p2B

ox

85%76%

51%

24%

55%48%

17%

50%

20%37% 34%

43%34%

1%0%

20%

40%

60%

80%

100%

Medical Retirals HousingSupport

Car Scheme ESOPs FlexibleBenefit Plan

LoyaltyBonus

IncentivesPerformance

Based

Three most important benefits that should be provided to employees in your organization?

Employees HR

Chart - 4

Chart - 5

40

Which of the following benefits do you currently offer to your employees?

96%

30%

93%

35%

80%

9%20%

28%

64%65%

87%

72%

48%

98%

38%

24%

80%

64%

0%

20%

40%

60%

80%

100%

ESOPs PerformanceBased Rewards

Sponsored Familyoutings

ForeignTrips/Vacations

Car Scheme Housing Support Corporate CreditCard

Cell Phones &Laptops

Employee ReferrelScheme

Health Benefits Flexible BenefitPlan

Paternity leave Adoption Leave Creche Facilities Post retirementmedical benefits

Medical benefitsfor employeesspouse and

children

Medical benefitsfor employees

dependentparents

Loyalty Bonus

HR

Why do you feel Infosys has the best Compensation and Benefit Policies?

31%

15%5% 10%

39%

0%

20%

40%

60%

80%

100%

Good Pay Package Good Compensation Good Company Good Benefits Others

Employees

Chart - 6

Chart - 7

41

Why do you feel Wipro has the best Compensation and Benefit Policies?

48%

3%

16% 16% 17%

0%

20%

40%

60%

80%

100%

Good Pay Package Good Compensation Good Company Good Benefits Others

Employees

Why do you feel Tata has the best Compensation and Benefit Policies?

19%15% 11% 12% 12%

31%

0%

20%

40%

60%

80%

100%

Insurance Policy forEmployees

Good Pay Package Inexpensive food Good facilities GoodCompensation

Others

Employees

Chart - 8

Chart - 9

Chart - 10

c&b survey

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