HCL Bonus: Plans to give out Mercedes Benz cars to top performers

The leading IT giant HCL Technologies, as part of HCL bonus plans, rewards its top employers with Mercedes Benz cars. Apparao VV, Chief Human Resources Officer (CHRO) at HCL Technologies, reportedly stated that the proposal is with the board for approval. The IT major has a history of rewarding his employees with exciting HCL bonuses. In 2013, HCL had given out 50 Mercedes Benz cars to top performers.

The Times of India reportedly quoted Apparao VV saying that the replacement hiring cost is 15% to 20% higher. He added hence the company is actively participating in skilling its full force. He explained by stating an example, and if one requires a Java developer, they will get them at the same price range, but a cloud specialist can’t be hired at the same price point.

He further told the media company Times of India that HCL has a good retention package with a three-year cash incentive scheme of 50-100% of the CTC every year. He noted that at least 10% of the critical talent in the leadership teams has benefited from it. Apparao further added that HCL’s IT services attrition on (last 12 months) basis rose by 11.8% in the June quarter, in contrast to 9.9% in the previous quarter.

Apparao VV, in the earnings calls update, said that the company witnessed an increase in attrition, and if one sees the rate of growth in attrition, HCL is probably best among the competitors. He added that the company is doing a lot of intervention in terms of engagement and expects the company  to reach a reasonable attrition rate within the next three quarters.

Other than the HCL Bonus news, the company also caught headlines when they announced that they would be hiring 20,000-22,000 freshers this year, increasing 50% in hiring from last financial year. The HCL technologies will also be rolling out salary increments effective 1 July to retain talents as attrition rates increases.