India • Volume 3 • Issue 2
The Fourth Dimension Voice of Employees
09
The New Pension Scheme
A Step in the Right Direction
22
New Banks
License to Skill
32
The Changing Face of Rewards Perspectives from Leaders
what’s inside cover story
14
The Fourth Dimension
Voice of Employees With an increasingly diverse workforce, no single reward element continues to be a value driver. Employee preferences vary widely – influenced by age, life stages, personal career anchors and so on. This article unveils the results of our flagship research on employee preferences in Total Rewards and how they vary by demographics.
04
09
22
Analytics at Work
Decoding Flexible Benefits
Survey Calendar
04
28
38
The New Pension Scheme
The Changing Face of Rewards
A Step in the Right Direction
09 New Banks
Perspectives from Leaders
32
License to Skill
Trend Check
22
CEO Compensation vs. Performance
37
Total Rewards Quarterly India • Volume 3 • Issue 2 www.aonhewitt.com/india
Editors Shilpa Khanna
[email protected] Sushil Bhasin
[email protected] Tel: +91 124 4155000
Editorial, Reprints & Syndication Office Aon Hewitt Tower, DLF Centre Court
There is enough bad news all around us and while being aware of it is important, to keep debating the situation is of little use. In the same way that a long period of business expansion generates over-optimism, the sharp nature of an economic downturn tends to generate an over-pessimistic reaction. The worst thing economists do is to extrapolate the current trend, whether good or bad and we all know that it often does not pan out that way. We need to spend our energy in relooking at our people model in light of the new low our economy has landed in. We should strap ourselves for the next 12 months, the least it will take for some stability to be restored. Organizations in such a situation are likely to make early mistakes like, handle cost takeouts in a fragmented and unstrategic fashion, start downsizing thinking the war for talent is the phenomenon of the past, etc. From elevating HR to the CEO’s agenda we cannot suddenly regress and expose our undeveloped leadership and decision-making capability. We can’t be seen making a trade-off between engagement and business results.
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Total Rewards Quarterly is published four times a year by Aon Hewitt Copyright © 2013 Hewitt Associates India Pvt. Ltd.
Organizations are finding newer ways to enhance the perception of pay, without necessarily investing in cash. This has led them to focus on benefits, understand employee preferences and differentiate for critical talent. In this issue we bring to you insights from our extensive research on employee preferences. In a burgeoning economy there is colossal waste of resources, from capital to talent deployment. Organizations would need to take stock and enumerate various ways to improve efficiency and boost productivity. The focus should move from "attract and retain" to "differentiate and engage". No decision we take during this period should make our current survival and turnaround difficult. Few key messages which actually state the obvious, but are often overlooked in our rush to make a difference include: "Start before you have to" – emphasize restructuring as a proactive measure, than a reactive strategy Focus on core issues – "cost" may not be t
