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 per cent of private sector employers and 95 per cent PSUs are planning to give bonus to their employees this festive season.
This is an increase by 12 per cent in private sector and 3 per cent in public sector employees last year.
Among private sector employers, 32 per cent are planning to dole out one-month basic salary to their employees as festival bonus, 29 per cent are considering to give a lump sum fixed amount and 39 per cent plan to give 5-6 per cent 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 per cent have plans to give a lump sum fixed amount as festival bonus.
"In current situation, maximum employers are paying around 4-6 per cent 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 per cent 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 per cent 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.