BENGALURU: Every company ensures a strategic reward system for employees addressing to these four areas: compensation, benefit, recognition and appreciation. As the companies prefer more on retaining those employees with high potential and critical skill talent, performance based rewards plays an important role in this year’s appraisal process. This appraisal season brings   happiness to the peoples face with many corporate companies willing to pay additional increments, perks and bonuses up to 200 percent to their top performers comparing to the average performers.

Top companies including Tata Motors, Future Group, Flipkart, Paytm, Panasonic, Mahindra and Mahindra, Vodafone, Godrej and RPG Group have started focusing on choosing the right talent to prevent shifting of loyalties and differentiation between their best and the average pool of work force. The E-Commerce and digital wallet giants are offering their top performers up to 200 percent of their CTC and about three times higher hikes than their average performers. Normally, the average performer’s bonus is marked around 20 percent of CTC.

"In this high growth phase you have to reward your lead people much more significantly since they are the ones driving the growth. It motivates people to go all out," said Amit Sinha, president - business planning and people, Paytm.

Companies like Paytm aims at providing better promotions and opportunities, with their latest move to allot $3-4 million funds only as performer’s rewards and recognitions. The automaker biggie Tata Motors also recognizes performers with huge rewards .The best performers get 15-20 percent raise, average performers is marked at 10 percent raise and Non –performers pegs no increment. Godrej Consumer Product retains employees by fostering increments and bonuses. Anandorup Ghose, a HR consultant Aon Hawllett India states “the average increments of top performers will almost double that of average performers”.

The appraisal rating at Siemens India reveled 60 percent of the employees who got average performance rating of 3 out of 5 received 10 percent in the increment and the top performers rating 5 had an increment of 20 percent. The Future Group follows a unique approach in the incrementing procedure by enabling a flat hike to all its employees irrespective of their performance. Panasonic India, a consumer electronics company ensures 15 to 18 percent increment rates to its high performers whereas the average performer’s increments rate goes around 7-8 percent.

"While the overall labour market has expanded, the competition for top talent is only getting more and more intense," said Suvamoy Roy Choudhury, HR director, Vodafone India. The company would offer 25-50 per cent higher variable pay to its top performers compared with average employees.

The appraisal period will witness intense competition for top talent across industries among corporate executives.

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