Organizations across the board are moving away from the traditional domain of guaranteed cash and incentives to incorporate a much bigger focus on intangible rewards, benefits and work-life balance.

2. www.peoplematters.in
Reward Trends for 2014
•Business Linkage: One of the biggest changes in the rewards space is the morphing role of performance
•Mix advantages: With a mix of millennials in the workforce at the entry levels, the focus is more on
providing better work and growth opportunities
•Health & Wellness: From being a part of mix advantages, health and wellness is evolving into a whole
new gamut of rewards
•Niche Skills: With niche skills gaining ground, hot skills are being rewarded at market aligned levels, even
if it means that the company has to deviate from its standard pay and reward levels
•HiPo Performers: High or rather ‘Hyper-performers’ are being recognized, empowered and rewarded
more than ever
•Long-term rewards: Within long term incentives, ESOPs have taken a beating due to the poor and volatile
market conditions in the last few years for established companies.

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•Compensation: The general market can expect the median salary increase to stay between 10 per cent
and 11 per cent like the last financial year. In reference to specific sectors, the Chemical industry is
expected to lead the market
•Political Influence: With the installation of the new government, speedy economic revival has led to
positive expectations in the employment space
•No one size fits all: The trend of companies moving away from a ‘One size fits all’ to ‘Bespoke rewards
strategies’ will continue in 2015
•Social recognition: Social recognition is becoming the order of the day and is rapidly gaining prominence
with companies working to include a complete online system
•Health & Wellness: In the coming year, wellness could move to be a part of the compensation package.
With increasing reimbursements for cycling to office, car-pooling, gym memberships etc. wellness is
becoming a significant part of rewards.
What does 2015 hold in store?

4. “11 per cent was the average salary increase projected by a
group of 700 plus companies who participated in a Mercer
survey released in February 2014. However, the actual
increase was 10.6 per cent. Likewise, sales and
performance incentives paid out in 2014 fell way short of the
targets that organizations had expected to payout based on
2013 performance. Business performance in many
organizations was below expectation, therefore impacting
their ability to
pay as forecasted.”
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5. “Equity-based compensation in the form of ESOPs or any
similar form is often looked at and evaluated as a
compensation tool. The decision-making often is restricted
to how much an employee makes from it. However, the fact
that there are other stakeholders in this initiative is often
ignored.
Any equity-based compensation scheme has three
prominent stakeholders apart from the employee –
Shareholders, Regulators and the Compensation committee
or the Management. Each of them has their respective views
and perspectives about such schemes.”
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6. “We work in an environment that requires us to collaborate,
function as teams, have common goals and yet, when it
comes to rewards, we gravitate towards placating
individuals. It’s but natural for us to be a little more than just
skeptical of the system. How can we be part of the team and
yet aim for personal achievements? If your intention is to
increase productivity and efficiency, incentivize teams. If it is
purely for retention, it doesn’t matter.”
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7. “During the past several years, the concept of rewards and
recognition has progressed considerably. HR leaders have
practiced and experienced the power of leveraging multiple
factors in rewards management to attract, inspire and retain
talent. Today, companies understand that their rewards and
recognition programs empower them to engage talent in a
better way. We, as a company, deliver a seven-pillar
approach that identifies the ecosystem and includes
business vision, HR strategy, culture and employee focus
where R&R operates.”
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8. “One of the most prominent developments in the rewards
space this year has been the change in the way companies
look at their employees. It is not just enough to know if
individuals are performing but the levels of his/her motivation,
peer interaction, innovation and engagement with the
organization. This key new trend has companies looking at
transforming a very mechanical evaluation mechanism into
an interactive and real time platform. Unfortunately, even
today one still witnesses HR departments working in isolation
and their initiatives unable to percolate down to the last man.”
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9. For Further Information
Kindly Contact
+91 (124) 4148102
info@peoplematters.in
www.peoplematters.in
Connect with us on
Total Rewards Supplement,
January 2015

10. For Further Information
Kindly Contact
+91 (124) 4148102
info@peoplematters.in
www.peoplematters.in
Connect with us on
Total Rewards Supplement,
January 2015