FMCG Sector: Steady, Stable and Spot-on
While the majority criteria for promotion is availability
of role at the next level and time spent by the incumbent
in the current grade, most organizations (86%) place a
greater emphasis on promoting individuals identified
as high potentials. As far as performance is concerned,
organizations justifiably look at consistent performance
(71% rely on last 3 years' ratings) rather than just
the most recent performance rating (29%).
Pay Communication - Balancing Transparency & Prudence
Communication is one of the most useful tools in
driving an organization’s rewards philosophy, driving
cultural change and managing engagement from a
rewards perspective. Employees demand transparency
from the organization in terms of the decisions taken
regarding their pay, and organizations are happy
to share details with employees in order to ensure
that employees feel they are being paid fairly.
72% organizations share “General Information
Broadly”, which includes sharing of details of elements
such as the overall rewards philosophy and the salary
increment process. Fewer organizations share more details
such as market data (80% organizations share this with
only their leadership team).
FMCG organizations are also placing increased
emphasis on the modes of pay communication, such
as implementation of Total Rewards Statements for
annual increment communications, organization-wide
roadshows and other interventions to increase awareness
of benefits available to employees and changes in
rewards components.
A robust pay philosophy acknowledges and addresses
the need to have targeted pay interventions for specific
employee groups. The insights derived from the practices
of the leading FMCG organizations throw light on
some expected trends as well as a few counter-intuitive
observations. While such practices are good to know,
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