While some companies are laying off employees and cutting salaries, Asian Paints has decided to take another road, the one surely less travelled by and decided to raise employees’ salaries. As a mature organization Asian Paints rather looks at this crisis as an opportunity to connect and strengthen their bond with its employees.
Managing Director and CEO Amit Syngle said in a news report, “I see this as a big opportunity to step in and interact with every single employee and assuage their concerns in an uncertain marketplace. We are not in the hire and fire business and as a mature brand have reassured employees that we all are together in this.”
The increase in salaries and the scope of assistance to the sales channel includes hospitalisation and insurance, full sanitisation facilities for partner stores, and direct cash support. Further the company also transferred Rs 40 crore into the accounts of its contractors.
To maintain the cash flows Asian Paints would still look to cut some costs but for that they are paying more focus in identifying other options that do not compromise employees’ well-being. The leadership is hence keeping a watch on cash flows and deferring expenses where it can.
“We have been debt free for years and are quite comfortably placed even if the uncertainty goes on for the next four or five months. The company had announced a huge dividend payout in March and shareholder return is our top priority," said Syngle.
Interestingly, Asian Paints has also started making sanitizers to aid the nation’s fight against the virus. Expanding its product range into sanitizers would allow Asian Paints to have a greater share of the customer wallet, with a range of sanitizers for various surfaces. The staff will also be productive and engaged. It is a wise move that serves the needs of both internal and external communities.