Mohit is a Senior HR manager at XYZ Ltd, a leading IT company in India. XYZ’s attrition rate is 23.

4
% (average) for last three quarters. Although the company is considered to be one of the best pay
masters in the industry and has recently featured in top 25 companies in the “Great place to
Work” survey, it still lost many young software engineers to the rivals and the start-ups. According
to you, what Compensation & Reward strategy Mohit should design to prevent any further
employee exodus.

XYZ Ltd has majorly lost its employees who are software engineers and come under the young age
bracket. Better pay benefits like stock options, food benefits and flexible work environment might be
the major factors in driving the employees towards start-ups. With the advent of emerging start-ups
in India, the tech talent do not hesitate to jump the wagon and join these start-ups with future
benefits in the mind. Talent moving to rivals would predominantly be due to salary hike and career
stagnation due to lack of promotion or onsite opportunities in XYZ Ltd.

Besides these the company might have a redundant appraisal policy that is not rewarding
hardworking employees. With the advent of HR analytics and automation in major process, XYZ Ltd
can reward employees who have shown improvement over the years but have not been top
performers. This would encourage them to continue the process and also stay in the organisation
where they are recognised.

With regards to Compensation and Reward Strategy, Mohit can include flexible work schedule in the
organisation policy. XYZ Ltd being a big firm might not have adapted it yet, but the changing
landscape does make XYZ to take up flexible work schedule to satisfy its employees. Mohit can
initiate additional benefit program like full insurance coverage for family members, additional travel
allowance for vacation, extending food benefits to imbibe organisational values to the employees.
These benefits would make employees more associated with the company. Surveying the employees
about their ideas and beliefs about their compensation, benefits, and possibilities for growth and
development are among the activities that take place during this process. The new plan's
effectiveness must be evaluated, and the results must be presented to company decision-makers.
Modifications to the approach for future implementation can be proposed based on this.