The perennial problem of attrition seems to be a major concern for many Indian IT companies. To control this problem, a lot of them are now showering gifts such as iPhone 6S, 100per cent bonus and even Mercs.
Today Infosys CEO Vishal Sikka played Santa Claus to top performers in the company and gifted iPhone 6S to 3,000 employees, as part of an effort to stem the high attrition rate.
Sikka said achieving what Infosys had "took your boundless energy and extraordinary effort". "And I believe it's not enough that we simply recognize it, we must celebrate it. That's why I am so happy that we are presenting you with a Holiday Bonus - the cool new Apple iPhone 6. A gift that'll always remind you and your teammates of the exceptional value you delivered for Infosys," he said.
Infosys has also announced a 100 per cent variable bonus payout to its employees for the December quarter. In Infosys's case, the attrition has been the highest among the top five Indian IT companies. The $8.2-billion IT company's attrition rate (on last twelve months basis) stood at 20.4 per cent for the quarter ended December 2014, slightly higher than 20.1 per cent registered in the July-September 2014 quarter.
And it is not just Infosys, many corporates are thinking out of box and offering higher compensations and hefty bonuses to retain key talent.
Recently, HCL Technologies offered around 130 of its top performers the option of driving home a Mercedes or taking their family and friends on an all-expenses-paid international or domestic holiday.
In another known incident, the title of a company-owned flat was transferred to a senior executive in order to retain the person.
Last year also, 1201 employees of the 6000-crore Hare Krishna Exports in Surat rewarded its employees with cars, jewellery and flats.
Certainly, all these trends indicate that a large number of companies are organizing their reward programme to build an effective team and increase productivity.