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Monetary Incentives Help Retain Talent: Study

Out of the companies surveyed, 67% said they only offer monetary incentives while 40% said they also offer non-monetary perks in addition to monetary benefits

Photo Credit : Reuters

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The one who says I don't work for money is probably amusing.  Monetary incentives still rule the roost when it comes to employee retention, finds the study by Wisdomjobs.com, a job portal providing end-to-end recruitment solutions to organisations and career opportunities to individuals.
 
The survey said that monetary incentives are tried and tested carrots. Out of the companies surveyed, 67 per cent said they only offer monetary incentives while 40 per cent said they also offer non-monetary perks in addition to monetary benefits. Also, 55 per cent companies offer monthly sales-based incentives, nearly 30 per cent offer annual bonuses, and only 10 per cent offer profit sharing plans.

According to the study, most companies vary the incentives they offer to employees based on roles, experience levels and seniority of employees. "Majority of companies offer a mix of monetary and non-monetary benefits to their middle and senior level employees while predominantly using monetary incentives at the junior level," the survey pointed.
 
High potential employees are often retained through a mix of incentives, development programmes, and career path mapping. Nearly 70 per cent of companies said they offer only monetary incentives to junior level (0 to 4 years) employees. Nearly 50 per cent said they also offer skill development programmes to them.
 
However, the survey was conducted on a small sample of 150 companies from 10 different industries that are Retail, Healthcare, IT, Manufacturing, Infrastructure, Automotive, FMCG, Logistics, ITES and BFSI. "Whatever be the retention strategy followed by companies, eventually they need to build a workforce of satisfied employees who can continue contributing to the achievement of the long-term goals of the company," said Ajay Kolla, CEO, Wisdomjobs.com. "While companies will have an upper hand in a recession, at other times, more often than not, they are left fighting the retention battle."