HCL Technologies, the Indian multinational information technology services and consulting company is giving away a Mercedes to its top performers. A company must keep their employee turnover rates to a minimum and with 20% higher costs of replacement, companies are understanding the importance of retaining their employees. As a result, we now see companies offer the best of perks and incentives one can imagine.
HCL Technologies has not done this for the first time. In 2013, The company had given out 50 Mercedes Benz cars to top performers but had discontinued to practice soon after. This time around, the approval has been sent to the board and the decision will thus take place.
“Replacement hiring cost is 15-20% higher. Hence, we are actively participating in skilling our workforce. If you need a Java developer you will get them at the same price point. But a cloud professional can’t be hired at the same price point,” says HCL CHRO Appa Rao VV.
“HCL has a good retention package with a three-year cash incentive scheme which is 50-100% of the CTC every year. At least 10% of the critical talent in the leadership teams have benefited from it,” he said.
The company plans to hire 22,000 freshers in the current financial year, as opposed to just 15,600 that it did last year.
Netizens have taken to Twitter to react to this news and have been taking the discussion forward.
The current market situation is very fluid, people are changing jobs in couple of months as the job market is at its boom. Few of my clients have promised good amount of money as retention/tenure bonus above the salary.
— Aditya Saigaonkar (@adisaigaonkar) July 21, 2021
This is becoming more and more like 1999-2000?https://t.co/utnDZnvE7L
— Amit Paranjape (@aparanjape) July 21, 2021
Man tech companies are going all out to retain talent and to hire new talent.
— Arvindraj (@arvindraj4) July 21, 2021
You cannot be a performer in that case.. because your goals are not inclined with company vision… 😆😆😆
— Dnyanraj (@dnyanraj) July 21, 2021
Other IT-based companies too have adapted to their employees working remotely and are looking to increase their workforce capacity. Moreover, increased attrition rates have posed to become a concern and as a result, the onus is shifted to increasing incentives and perks. HCL has definitely taken it up a notch with their employees driving home a Mercedes upon performing well.