The Transience of Tenor: How the IT Industry can Cope
to look at as well to off er a complete package to the
employees.
Looking only from a rewards perspective, organizations
off er diff erent components of rewards which are tenurelinked.
This can act as a motivating factor for employees
and encourage contribution to business growth. Some of
these key rewards elements are mentioned below:
1. Long-term incentive/Deferred cash plans: This is a
major incentive used by all start-ups and new age fi rms
as well as fi rms competing for talent with start-ups.
Majority if not all start-ups/e-Commerce organizations
off er long-term incentives or deferred cash plans at
campuses to promote longevity and encouraging
students to stay longer in the organization
2. Long service awards: While not a new age reward
benefi t, long service awards has been an integral
rewards and recognition benefi t in most organizations
for years and continues to be relevant even today. The
change noticed however, is that the years for which
the long service awards were granted have reduced.
This can be attributed to the dynamic talent landscape
and more companies introducing long-term service
for three years completion and in some cases, even
two years completion in the organization. These are
considered as more of motivational awards than
retention awards
3. Retention awards: This award is special and given
only key talent or top performers of the organization
to ensure that critical talent stays within in the
fi rm and the knowledge base remains within the
organization. This is also linked to identifi cation of key
and critical talent which may not be managed through
a robust assessment and can bring in subjectivity
4. New age benefi ts: There are newer benefi ts and
privileges that organizations have started off ering
which are linked to tenure in the organization. Some
of these benefi ts include awarding employees with
gifts ranging from vacation homes in exotic locations
to super bike setcon completion of a certain number
of years in the organizations. Such benefi ts can act
as a major incentive for the Gen Y and millennial
population to stay longer in the organizations, as they
cater to the changing employee demographic
5. Learning & development opportunities: Tenure linked
learning & development opportunities are not so
common but few organizations also give preference
in L&D opportunities to employees who have been
loyal to the fi rm. Depending on the L&D program
organization have diff erent tenure criteria/eligibility
for employees
Best Way Forward
With this article, we attempted to shed light on the
importance of tenure in organization both from the
fi nancial as well as non-fi nancial perspective and share
some of the new age practices companies are adopting
to incentivise employees to stay. Achieving this objective
requires fi rms to look at rewards and other HR elements
from a new lens to understand the issues faced by the
changing workforce and provide new solutions which
best address the new age demographic.
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