Bangalore, Nov 23(UNI) Human Sapital Advisory Services Head Dr Ganesh Shermon today opined that career growth opportunities, followed by the lure of better compensation influences the trend of migration of employees and attrition.
Giving a presentation in a Seminar on "Implications of Fringe Benefit Tax (FBT) on ESOP's" organised by the Bangalore Chamber of Industry and Commerce (BCIC) here, he said that since Indian economy was poised to grow at a greater height not visualized before the war for talent attraction, motivation and retention was being witnessed in the corporate world.
He said that due to changes in the demographic profile and consumer behavior there was a spurt in the number of youth employed in frontline jobs which also paved ways to work out strategic choices for the effective management of Human Resource. In this changed scenario the needs of the employees including the freedom to structure lifestyle, higher current earnings than future, autonomy in investments and asset management and employability than employment security needs to be addressed.
He said that among other things the employer also wants attraction and retention in a highly competitive market, controlling growth of overall employee costs including tax liability and reduced cost of administration while chalking out a compensation strategy, while government wants to have a share of a piece of the prosperity pie, he added.
Calling upon the employers to move away from the traditional compensation and rewards system to "Total Rewards' including compensation in cash and kind Dr Ganesh felt that there is a need to align total rewards strategy with Business Strategy.