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.
3 comments:
As you rightly said that unless the support of top management exists towards the role of engagement from the line managers, HR has a minimum role to play. Infact that is a reason to worry as well as a challenge to survive in such helpless situation. Can some strategy be worked out by HR's in such situation to convince the top management to shift their traditional approach of so called engagement in the form of entertainment!!!!
Traditional HR departments do not enjoy equal status with other functions, because of their inability to assert themselves as value-contributors. HR has to improve its credibility by making measurable and specific contributions. Once this starts happening consistently, the image-makeover happens automatically. Then, I am sure more people would be willing to listen to what HR has to say.
Plainly speaking, you would be heard only when you mean business and for that you have to understand and influence business significantly.
Cheers,
Debashish
Thank you so much for the thought provoking insight in understanding the business imperatives.
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