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India: In the midst of a storm of job losses, pay cuts and deferred increments, a bunch of companies have held firm. Hindustan UnileverNSE 0.59 %, Asian Paints, Johnson & Johnson, HCCB, Flipkart, Myntra, CSS Corp, BharatPe, BSH Home Appliances and Inflection Point Ventures are among those that have chosen to hike salaries, make variable payouts and promote employees even in these tough times.
Compensation experts said while companies across the board are taking decisions based on business realities, the concern they display during the Covid-19 crisis will have a lasting impact on employee goodwill.
“In these unprecedented times, it is a great opportunity for organisations to lead with empathy and take care of their employees’ interest. We believe that giving pay hikes will help add certainty in these uncertain times,” said Manish Tandon, CEO, CSS Corp. The IT services company has paid out increments and variable pay to its 7,000-strong workforce. At the lower bands, which constitute 70% of the workforce, the variable payout was 100%.
“It’s our job to keep the morale of employees high in these uncertain times and give them a sense of security,” says Neeraj Bahl, MD and CEO, BSH Home Appliances. While the firm cut marketing and travel costs and initiated a hiring freeze, staff were given increments and promotions went ahead.
‘Moves More Company-specific’
‘Paying scheduled salary increments and variable payouts is especially significant now, given the sheer number of companies that have gone in for salary cuts and layoffs in the past month or two. Many are struggling to retain jobs and current levels of remuneration.
“We took the decision of not cutting salaries or laying off people because, while the macro trends were looking weak starting March, we are a people-first organisation and believe that when we put people first, our people make things happen for the organization,” said Inflection Point Ventures CEO Vinay Bansal.
The likes of Tata Consultancy Services (TCS), Wipro, PwC India and Infosys have deferred hikes. Reliance Industries, Oyo Rooms and TVS Motors have cut salaries while Ola, Uber, Zomato and IBM are among those that have fired employees.