Faced with increasing competition for talent in the auto sector market leader Maruti (owned by Japanese maker Suzuki) has revamped its Talent compensation systems. The innovative part I find is the bit about helping employees to buy a house at a lower price. I wonder if this practice will catch on and what kind of impact it would have on attrition.
Maruti plans to induct younger professionals into to the senior management cadre and devise salaries linked to performance even as it hikes entry-level pay, and throws in novel incentives to hold on to its executives on the fast track.
Maruti has increased performance-linked pay from junior levels to the top management by between 10% and 25%. "We have linked our variable pay to the financial performance of the company with a greater focus on cash variables as the liability is lower," said S.Y Siddiqui, Managing Executive Officer, HR & Administration, Maruti Suzuki. Other carrots include helping employees buy a house by negotiating with builders for a better price.
