Amid Covid gloom, there is a good news for employees

The news isn’t all bad for white collar India. Many companies across sectors are committed to disbursing variable pays and even increments. Sectors like consumer, IT products and pharma as well as multinationals have been particularly supportive. And an industry survey brought more cheers — four out of five companies of 500 surveyed by Aon in May said they are not instituting across-the-board pay cuts. The survey was shared exclusively with ET. And nearly 70% said they would not lay off employees due to Covid-19. “The last two months and the following two quarters will be without a doubt tough and in some moments harsh — but we will shortly and surely see economic activity reviving — slowly at first and then by next year with greater degree of normalcy,” says Nitin Sethi, CEO, India & South Asia, Aon Consulting. “Most companies are thinking of layoffs as an absolute last resort. They want to explore all other cost cutting options first. Talent will lead strategy, so they don’t want to break morale or spoil the brand,” added Sethi.A SNAPSHOT ACROSS SECTORSCompanies that have paid/will pay out bonuses/increments (Based on ET reports and company sources)CONSUMER: HUL, P&G, PepsiCo, Nestle, Asian Paints, Hindustan Coca-Cola Beverages, Coca Cola India, Johnson & Johnson, BSH Home Appliances, Samsung, Whirpool, LGBFSI: Citi, JPMorgan, Goldman Sachs, IDBI Federal Life Insurance, Digit InsuranceECOMMERCE/STARTUPS: Flipkart, Myntra, BharatPe, Razorpay, Freshworks, Infidigit IT/ITES: CSS Corp, Capgemini, CognizantCONSULTING: Bain & Co, BCG PHARMA: Pfizer, Roche India, Novartis in IndiaOTHERS: Siemens India, TCG Life Sciences 76378042Most companies that change salaries early in the year did so.Most MNCs following the April increment cycle rolled out salary increases and bonuses.Majority of Indian companies in the April cycle paid out bonuses, but have deferred salary increases.In companies where the cycle is in July, Aug or later, salary increases are deferred in many cases. Where they are being rolled out, the changes are for junior and middle management teams only.BONUS, VARIABLE PAY (ET reports, Industry estimates based on 100-odd cos)About 84% organisations are giving bonus/variable pay for the last year performance, but the payout may be deferred or given at a lower rate than previous years.Many organisations (65%) are giving differentiated increments to high performers only, while others may give inflation-adjusted increments after business normalcy.These include organisations like HUL, PepsiCo, Nestle, Asian Paints, Amazon, Google, Samsung, Cognizant among others.COST-SAVING MOVES Furlough /leave without pay, has been utilised as a cost-saving measure mostly by the travel, hospitality and media & entertainment industry. This includes organisations like Spice Jet, Go Air, Vistara, Hyatt, Book-MyShow, among others.MEDIA & ENTERTAINMENT (Industry estimates) A number of media and entertainment firms have initiated salary cost management actions through either salary cuts/deferment, leave without pay or job cuts. However, a couple of leading media and entertainment firms have not initiated any salary cost management measures so far. 76378051

from Economic Times https://ift.tt/3cZ7qwV