Companies Using Multi-Year Packages To Boost Talent
BANGALORE: Companies are using new innovative tools by offering multi-year packages for the young employees, reports Times of India.
This placement season, freshers are being offered salaries in ascending installments over 3 to 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 said.
Some 20 other students of the institute have been offered fixed 3 to 4 year packages by three companies including data cruncher, Mu-Sigma and business solutions provider, EXL Analytics.
Sardar Patel college training and placement officer, Rahul Dahatonde said, "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."
These days, 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 to boost up their careers.
Mu Sigma, COO Ambiga Dhiraj feels that these days young people think about short term gains over long term gains. She said "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."
Even the e-commerce space is using this trend by offering multi-year packages. Ashu Malhotra, HR head at online fashion retailer Jabong said, “A war for talent in the e-commerce space is behind the new trend.”
Companies feel that the fixed multi-year packages are innovative, profitable, and employee-friendly, much unlike bonds.
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