Total Rewards for Total Engagement

Companies are increasingly realizing the need for engaging their 'soft' assets, however they also realize that soft strategies (mostly rhetoric) won’t help in achieving the same. I have always maintained engagement is driven from the top but implemented by the line managers. The HR acts only as a custodian and facilitator. However engagement is a line function. Managers have to be made accountable for engaging their people.


Few companies in India are moving towards taking concrete steps in doing that as well. The compensation of managers is gradually shifting towards ‘total rewards’ not only in concept but also in practice. Have a look at some of the quotes from today’s Economic Times news (Cos Tag Exec Pay to nurturing skills):

1. Wipro: 20% variable pay of GMs linked to attrition from last year.

2. IGATE-PATNI: 50% of variable pay linked to people management, delegation of duties, goal-setting since 3 years.

3. LG: 105 variable pay of managers linked to attrition.

4. Godrej: 5-10% variable-pay dependent on team performance and development assessment.

5. Sutra: Out of 10% variable pay, 3% on sub-ordinate targets.

6. MTS: 30%-40% variable pay linked to talent development and mentoring skills and 10% to employee engagement.

7. Mumbai-base engineering company has 12% variable pay this year on a ‘nurturing’ parameter.

‘People do not leave their companies, they leave their supervisors’. This famous quote is so true even in the present context. Organization are waking-up to that and putting the onus of engaging their people on their managers. Accountability shall only add more concrete and strength to the same.

Welcome steps but still baby steps for Indian industry. Miles to go…however now the course seems to be correct at least for few. Hope others shall soon fall in line.