Intel surprising their employees
Bangalore: In what may come as a surprise, many firms have begun offering one-off bonuses to employees. As business condition is improving globally, employee retention has become a big priority for companies. Taking the lead is Intel, which is giving a 'Special Thank You' bonus that's either $1,000 or $500 depending on the country where their employees are based, reports Economic Times.
Employees in India will get $500 (about Rs. 23,000), just like those in China, Malaysia and Russia. Employees in the U.S., Australia, France, Germany and Canada will be richer by $1,000 (Rs. 47,000). The bonus is said to be uniform across all grades within a country and will be paid out between December 18 and December 31. The bonus is a mark of appreciation for outstanding work in 2009.
The bonus is in addition to the annual 'employee bonus' given in January and the 'employee cash bonus' given in August. According to an employee who didn't want to be named, "This has come as a pleasant surprise because this year the annual hikes were not given and there were no promotions either."
Siddharth A Pai, MD, TPI Advisory Services said to Economic Times that it is not surprising that firms have started giving variable pays and bonuses. "Basically, it's a recognition of the fact that the market has begun to turn around. It also indicates there's a significant number of deals in the pipeline waiting to materialize. Hence, companies need to keep employees happy. The work load too is expected to increase next year," he said. Zinnov Management Consulting, currently working on its annual 'Annual compensation benefit survey for MNC R&D centres in India', says that early trends indicate that MNCs are either looking at giving one-off bonuses or bringing forward the annual April appraisal cycle. One needn't wait till April to be appraised, as this process could kick in as early as January 2010.
The report also suggests that many MNCs are thinking on the lines of an interim pay hike, as almost all companies either deferred or gave a small hike in April this year.
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