Link corporate rewards to performance: Experts at AIMA seminar

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MBAUniverse.com News Desk |
July 24, 2016
As retaining and motivating talent becomes an important corporate function, more and more HR thought leaders are recommending linking rewards with performance.

 The two-day seminar titled ‘Performance Related Rewards: Innovative Practices (PRR)’, organized by All India Management Association (AIMA), offered various dimensions of designing an effective Performance Related Rewards (PRR) scheme.

In his inaugural address, Kamal Singh, Director-CMD, AIMA, set the tone for the seminar by stating: “Attrition rates are soaring across the industry. Companies need to focus on retaining and nurturing high performers. A successful PRR scheme can be instrumental in achieving this.”

G K Agarwal, executive director (HR), NTPC, said, “A company introduces a performance-related pay scheme to encourage employees to work harder. The better you – or your team – carry out your work, the more your employer pays you… Pay-for-performance can be a positive reinforcer of organizational change”.

Stressing on the importance of human capital, Anil Nayar, director, Bharti Televentures Ltd, added, “Unchallenging work environment, limited career growth, less promotional opportunities, bad leadership and compensation can have an adverse affect on an organization. In the Indian economy, which is a knowledge economy, companies that attract and retain the best and the brightest talent will succeed.” 

The seminar deliberated upon how Indian corporates must design PRR strategies to arrest high attrition across sectors, force job-hoppers to spend substantial time to value add to the company, and empower employees. Today, corporates are successfully using PRR schemes to create a performance oriented work culture, facilitate excellence and growth and retain talent.

“Performance-based rewards are an important component in building an engaged workforce for which it is important to utilize every means available, to identify, attract and retain talent for an organization to go in the right direction,” said Aquil Busrai, Executive Director (HR)- IBM India.

Other speakers who shared valuable insights on the subject included V C Aggarwal, director (HR), Indian OIL Corporation; A Sudhakar, Vice President (HR), Dabur India; Vikas Baijal, Vice President (HR), NIIT Technology; and Chandan Chattaraj, ED (HR), Xerox.

Truly a toast to human capital!