Employees may expect good bonus payouts from their employers this Diwali, as positive sentiments are trickling in at the companies from a slew of reforms announced by the government amid an improving economic climate in the country, according to experts.
More companies are planning to give out bonus to their employees as compared to last year this festive season, HR professionals have said.
These bonuses can come in form of cash payouts as a percentage of the total salary, special festival incentives, gifts and a larger portion of employees' total variable pay.
According to a survey by human resource consultancy MyHiringClub.Com, 65% of private sector employers and 95% PSUs are planning to give bonus to their employees this festive season.
This is an increase by 12% in private sector and 3% in public sector employees last year.
Among private sector employers, 32% are planning to dole out one-month basic salary to their employees as festival bonus, 29% are considering to give a lump sum fixed amount and 39% plan to give 5-6% of CTC (Cost to Company package) as festival bonus.
In the public sector firms, 63 percent of employers surveyed are planning to give one month basic salary to their employees as festival bonus and another 37% have plans to give a lump sum fixed amount as festival bonus.
"In current situation, maximum employers are paying around 4-6% of annual CTC as festival bonus," Psyche Panacea COO Vikas Vats said.
Ripples Consultancy Services MD and CEO Rishi Raman said, "It is like sharing the profits with the real worker, who actually contribute increasing the companies market value. Some of corporate starts giving Diwali bonus but the gap is huge if we see the statics percentage only maximum to 10% of companies started or already giving".
"In the past two years we have seen lots of change happening in terms of employee benefit structure. For sure soon these bonuses will definitely encourage the prospective of candidates," he added.
Besides, companies in the sectors like IT and IT-enabled, financial services and automobile are planning to shell out festive bonuses to employees.
The trend is likely to be encouraging in sectors like auto and retail which mostly record impressive sales during the festival period. For several such companies, the festive sales often contribute 30-40% of their annual sales.
HR experts also believe that hiring activities is likely to be improved from the next month after a tough job market. Thus, industry experts believe firms will give out bonuses or variable pay hikes for retaining employees.
