New Delhi: When it comes to rewarding top-performing employees, many large corporates are giving out expensive gifts such as latest iPhones, Mercedes cars, flats and jewellery - a trend started by a little-known diamond firm in Gujarat a few months ago.
Last Diwali, Surat-based Hari Krishna Exports created a flutter by announcing expensive gifts like cars, flats and jewellery worth Rs 50 crore for its nearly 1,200 employees.
Each employee who passed a 'loyalty test' was given a Diwali gift worth at least Rs 4 lakh and an option to choose one gift - from a Fiat Punto car, part-payment for a 2-bedroom flat or gold and diamond jewellery.
Joining this club, companies like Infosys and HCL Tech are now giving out expensive gifts to their respective top-performing employees.
Human resource experts believe that companies are thinking out of the box when it comes to retaining top talent and are ready to dole out attractive perks in addition to hefty pay package and attractive annual bonus.
HCL Technologies has rewarded 130 of its top performing employees with a Mercedes or an all-expenses-paid holiday abroad as a token of appreciation, while Infosys gifted iPhone 6S to 3,000 of its top performers.
"There are enough opportunities in the market in terms of new projects and hiring needs are increasing for every company across the industries so companies are looking at motivating their top performers and are ready to compensate them in terms of 'kind' which excites these performers," said Sunil Goel, managing director of executive search firm GlobalHunt.
According to HR experts, star performers as always would continue to be differentiated and companies would go the extra mile to retain them. While compensation is one of the factors for retention, smart companies offer accelerated career opportunities for such people.
Hari Krishna Exports had selected 1,268 employees for the reward from its total workforce of about 6,000, for their exceptional work, devotion and loyalty towards the company.
"These are certainly good initiatives to keep the morale up in the company in the short term and adds to the feel good factor and sends a positive message that the company cares for its people," global executive search firm EMA Partners International regional managing partner-Asia K Sudarshan said.
Mr Sudarshan further said that "in the longer term, to manage attrition and retain good people the company has to create sustained career growth opportunities for its people and needless to say, compensation has to keep pace with the rest of the industry".
Experts believe measures like this help in containing attrition, as performance is the key to retention and these benefit schemes helps in encouraging all to perform better.
Going forward, apart from cost-to-company or CTC, the remuneration package would include companies bringing up some top-up benefits like offering electronic devices, domestic and international travel, stock options, experts said.
According to a survey by global professional services company Towers Watson, differentiating between crucial talent, high potentials and average performers is becoming more essential than ever.
A well-defined employee value proposition (EVP) is increasingly important as cost pressures and the talent shortage become more acute.