The Economic Times
12,248.2567.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

When employees got sparkling bonus

A company’s value lies in how closely aligned the gains of its employees are with the gains of the company (read, its employer).

ET Bureau|
Updated: Oct 22, 2014, 05.18 AM IST
0Comments
A company’s value lies in how closely aligned the gains of its employees are with the gains of the company (read, its employer). 
A company’s value lies in how closely aligned the gains of its employees are with the gains of the company (read, its employer). 
On learning about a diamond export firm in Surat announcing its offer of a Diwali bonus to its approximately 1,200 employees in the form of apartments, cars and jewellery, it is natural for employees across sectors to feel envious. What is perhaps less natural is for employers across the board to feel envious too. They should. Once one goes past the ‘wow’ factor, the largesse delivered by Savji Dholakia, chairman of the Rs 6,000-crore Hari Krishna Exports, is a matter that both employees and employers lying at the two traditional ends of any organisation should appreciate for reasons that go well beyond benevolence.

A company’s value lies in how closely aligned the gains of its employees are with the gains of the company (read, its employer). The more traditional option is to provide workers an employee stock ownership plan (Esop) that joins a company at the shoulder, if not the hip, with the employee. Such an arrangement — a relationship, really — has employees hitch their own future with that of the company. There can be no better incentive than that to better the fortunes of ‘both’.

What the ‘fortunate’ employees of Hari Krishna Exports have received as part of their ‘loyalty programme’ is Esops by another name and in the more classical format of patronage over and above payment for labour. The message sent out to them is clear: keep working for us the way you do and you will be rewarded, in addition to the earnings you make from your work. Not only does this make the employer earn the reputation as someone who values and rewards good work and good workers, but it actually conflates the well-being of the employee and his workplace as one reassuring objective. What else could an employee ask for? And, indeed, be asked for.

Also Read

What are Bonus Shares?

The Code on Wages, 2019: Understanding the key changes to wages, remuneration and bonus

Deutsche Bank considers cutting bonus pool by as much as 20%

Himalayan states demand green bonus, separate ministry

A banker reveals the bonus culture behind a $220 billion scandal

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service