The Relevance of 360 Degree Feedback
While Jack Welsh may deserve his fair share of credit for implementing the 360 Degree Feedback mechanism for the first time in his pioneering initiative at GE, the history of this feedback mechanism dates back all the way to the first world war and to the American Army. While the Americans did not think the […]
What Do Employees Expect From Managers?
It is essential for managers to know what their employees expect from them and the organization. Let us find out what an employee expects from his managers and superiors: Every individual is hungry for recognition. A manager needs to acknowledge the hard work of employees and appreciate them in front of others. This way, employees […]
Job Analysis Methods
Though there are several methods of collecting job analysis information yet choosing the one or a combination of more than one method depends upon the needs and requirements of organization and the objectives of the job analysis process. Typically, all the methods focus on collecting the basic job-related information but when used in combination may […]
Dealing with Unacceptable Employee Behaviour
Not everyone knows how to behave at the workplace. There are some people who find it extremely difficult to reach office on time, concentrate on work and maintain the office decorum. Now, what do we do with such employees? Believe me, scolding them, criticizing them, abusing them will make situation even more worse. You need […]
Flexi-Work Options for Work-Life Balance
Many organizations in the contemporary scenario have realized the importance of work-life balance for the employees, so that they remain healthy and happy, which will directly reflect on their productivity at work and overall job satisfaction. Research has proven that by compelling the employees for achieving higher targets/production, may yield results in the short run […]
The IT (Information Technology) sector comprising of software and hardware sectors is a sunrise sector in many countries. Despite the fact that the sector has been around since the late 1980’s, the sector is considered relatively young and a place for innovation, entrepreneurship and growth. No wonder many fresh graduates flock to the IT sector after graduation to take up roles that are challenging and stimulating.
To attract the best talent available, the IT sector designs the compensation packages in ways that can be termed innovative and path breaking as they bundle the basic compensation components and perks and benefits in novel and unique ways.
This article looks at some of the ways in which the IT sector provides compensation for its employees.
A hallmark of the compensation packages in the IT sector is their reliance on non standard components that are the characteristic of the old economy or the traditional sectors. In comparison, the so-called “new economy” companies make it a point to include additional components like variable pay, performance linked incentives over and above the base pay that they give out to their employees. With the aura surrounding the IT sector, many employees have come to take for granted the high pay along with the attractive perks and benefits that these companies give.
The IT sector pioneered the introduction of ESOP’s or Employee Stock Options plans for the employees as a means of ensuring that employees take more ownership and responsibility for their work by making them partners in the growth of the company.
The rationale for giving stock options to employees is that once they feel a sense of ownership with the company in which they are working, their performance levels go up due to increased motivation and satisfaction that such a practice tends to inculcate in the employees.
Given the fact that most IT stocks zoom ahead in value after the IPO or the Initial Public Offering is announced and retains their valuations well into the company’s existence, IT companies that offer ESOP’s are much sought after by many employees.
The IT sector provides additional benefits like transportation, medical allowance and allowances for furnishing one’s house. With an emphasis on all round welfare as opposed to paying the employees what is the minimum, IT companies ensure that their employees are taken care of well.
Many companies in the IT sector are quite liberal in insuring their employees and their families under group medical insurance which provides adequate cover to the employees and their families in case of illness and surgeries as well as accidents and other unanticipated contingencies.
Further, some IT companies go a step further and provide for recreational allowances that ensure their employees’ vacation expenses are also taken care of.
Given the innovative ways in which IT companies provide for their employees, it is not surprising that this sector ranks among the most preferred employers and the companies that make up this sector is the destination of choice for many a grad fresh out of college.
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