Reliance Jio in an attempt to curb attrition rates has decided to provide its top performers a 10-15% hike in salaries. These increments have been offered across levels. Reliance Jio handed over 15% increments to high performing junior and middle-level managers. For employees in the senior executive level, i.e. the level of DGM and above, the company gave a 10% hike reported Economic Times.
The increasing business competition in the telecom sector has led to its spillage in the talent pace as well. With companies like Airtel and Vodafone accelerating the growth of its services in the 4G spectrum space, the hunt for top talent has also intensified. This move is timely given that since its launch, Reliance Jio has seen a number of high-profile exists. Recently, Pradeep Shrivastava resigned from his post as chief marketing officer. Chief cloud architect Soren L Hansen, assistant vice president (data science & analytics of cloud engineering) Hari Charan Rao, assistant vice president (security operations) Maya R Nair, and public Wi-Fi business head Pawan S Yadav also left the company .
This move comes right after Jio telecoms provided extended LTI options to over 100 employees. The new plan is aimed at retaining key employees and is for high potentials in the group who earn Rs 2 crore on an average. The program could mean stocks worth more than Rs 20-30 lakh over and above the salary reported Business Insider. Long-Term Incentive Plan has traditionally been a common measure taken by companies where the attrition rate is high, finding extensive usage in the information technology and ecommerce sectors.
Although the move comes in the middle of the fiscal year, the rates of the salary hike is substantially higher than the industry standard of 7%-12%. But only time can tell if such increase in LTIs and salary hikes be able to curb attrition.