NEW DELHI: Fixed salary components can wait till the overall mood of the economy improves, but Indian arms of multinationals are going ahead with
performance-driven dole outs to keep employee morale high.
MNCs such as US telecom major AT&T, South Korean consumer electronics major LG, US pharmaceutical giant Merck, and UK-based Standard Chartered Bank are some of the few issuing bonuses to their employees in innovative ways.
While some are rewarding them for their loyalty, others have decided to pay bonus only to lower-rung employees for their performance in financial year ending March 2009.
And the modes of payments have changed too. For instance, StanChart is paying only a proportion of annual bonus award to its employees who have received a bonus above a certain threshold. The bank has deferred the bonus to be paid out in equal tranches over a two- and three-year period.
"We believe that deferrals are a good means of aligning performance and reward in the long term, as well as the short term, and the right thing to do in our current business circumstances," a StanChart spokeswoman said. The bank's annual performance award (bonus) comprises two components, a cash award and deferred shares.
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