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Best performers get gifts such as foreign holidays, high-end cars and mobile devices
Departing from the traditional practice of rewarding top performers with cash, Indian information technology (IT) services companies are increasingly looking at 'visible' rewards like phones and cars among others.
Learning from peers in other industries, several large IT services companies have in the recent months rewarded their best performers with gifts such as foreign holidays, high-end cars and mobile devices.
Earlier this month, Infosys distributed around 30,000 iPhones to its top performers, while HCL Technologies rewarded its top talent with Mercedes cars and foreign holidays with family.
“It sends a message that we live by the principle of recogonising meritocracy and this initiative is a highly visible commitment to that,” said Prithvi Shergill, human resources head at HCL Technologies.
While money could be a favoured reward for many, experts say that in most cases the quantum of the payout cannot be disclosed by the employees and thus it does not give them an opportunity to “flaunt” it.
On the other hand, gifts can be flaunted and give both the employee and the employer a psychological boost, which money may not be able to provide, say experts.
Several human resource professionals believe that this might be the way forward for IT companies, as such rewards have proved to be very successful in other industries such as fast moving consumer durables (FMCG).
C K Guruprasad, principal at executive search firm Heidrick & Struggles, says that even while employees value money, a gift such as a car or a mobile phone allows an employee flaunt the kind of recognition he has received from his company. It also gives the company an opportunity to show everyone how it takes care of its employees.
"Gifts give an employee the feeling of being a top performer and there is a strange emotional attachment to gifts,” Guruprasad said. “You may forget a cash bonus or money that you were given for your performance, but gifts remind you of your employer's appreciation of you and you feel a sense of gratitude."
Experts also believe that these innovative gifts allow large companies to compete with smaller players, who reward top performers with employee stock options (ESoP). While it is easy for a startup to dole out stock options, considering they have a far smaller team, a large company with thousands of employees does not have this option.
Mohandas Pai, former HR head of Infosys, however, dismissed such measures calling them mere “gimmicks” by HR departments of companies. He believes that employees should not be overjoyed by them. "These are given to a small number of people who are very well paid so it doesn't matter to them much,” Pai said.
