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Companies bond with new talent using multi-year packages
Posted On:
04/11/2014
Updated On:
With the adage "love your job, not your employer" gaining traction with every generation of fresh recruits, the job market too is using innovative tools to woo young blood for a "long-term relationship"
Education News Taking in probationers with stipends and subsequently absorbing them, retention bonuses at the end of the contract periods and funding candidates' higher education, are by now regular carrots used to retain talent. This placement season, companies have added a new item to the bouquet: Freshers are being offered salaries in ascending installments over 3-4 years. That is, they are being offered handsome fixed packages spread across years instead of the usual annual offer.
For instance, Urvi Palat, an electrical engineering student of the Sardar Patel College of Engineering, Mumbai, bagged a four-year package. "It covers assured performance bonuses that is divided evenly in the first two years and increases thereafter," Patel says. Some 20 other students of the institute have been offered fixed 3-4-year packages by three companies including data cruncher Mu-Sigma and business solutions provider EXL Analytics. "The offer looks attractive to many, but for a few who wish to pursue higher studies tend to disapprove such offers where the incentives come only after a couple of years in service," said Sardar Patel college training & placement officer Rahul Dahatonde.
The new approach to recruitment reflects the dramatic change in the job scenario in Asia's third-largest economy where youngsters are switching jobs more frequently. A recent survey by a global recruitment agency revealed that over half the employees in India feel changing jobs helps boost careers. Mu Sigma COO Ambiga Dhiraj feels that the growth in the tech industry has put "young minds" into the habit of thinking of short term gains over long term learning and career growth. "In our perspective, multi-year fixed packages help build an environment where compensation is not the driving factor for performance. Rather, it is elements such as learning and team work." The new wooing techniques are more in vogue among new-age companies, including those in the e-commerce arena. Ashu Malhotra, HR head at online fashion retailer Jabong, says a war for talent in the e-commerce space is behind the new trend.
While the arrangement itself resembles the inflexible employment bonds that curtailed career opportunities, companies loathe the comparison. They say that the fixed multi-year packages are innovative, lucrative and employee-friendly, much unlike bonds.
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