Auto majors plan to give bonuses, pay hikes to boost staff morale

Mumbai: Automobile companies are trying to ensure increments and bonuses are paid this year to keep employee morale high, as the industry battled a deep downturn amid the pandemic.With the new norm of working from home throwing up its fair share of challenges and employees feeling the pressure, HR heads are looking to bring in a sense of positivity. While payouts may be slightly delayed due to cash-flow issues, HR executives say companies need to stay away from harsh decisions in these uncertain times to boost employee morale.New entrants to the Indian market Kia and MG Motor, in fact, have already given variable pay and other incentives, while Mahindra & Mahindra, Hero MotoCorp, Ashok Leyland, TVS Motor, Toyota Kirloskar and Tata Motors are expected to do so in the next month or so, industry insiders said. 76841845The country’s largest carmaker, Maruti Suzuki, is likely to announce increments in August but hikes are expected to be smaller that those in previous years. The company did not respond to an email seeking comment.Pay-outs at Mahindra are traditionally done on August 1. "While the bonus will be paid this year, we will take a call when to do it,” chief HR officer Rajeshwar Tripathi said. The decision on increments would be taken closer to August, he said, adding: “During such uncertain times, it is necessary to keep the best interest of the employees in mind and not take harsh decisions.”Most auto companies are studying the situation on increments as volume projections have been very low. "We paid our company bonus/incentive in February while in March, we declared no job or salary cuts at a time when the Covid crisis had just started and we were one of the first companies to assure employees on social safety,” said MG Motor India managing director Rajeev Chaba. “As we are ramping up and volumes coming back faster than expected for us, we are considering increments/promotions to be done in the next few months, sooner than earlier set expectations.”HR experts said payment of bonus will boost morale for employees as well as ensure that they do not jump ships immediately as the economy opens up.TVS Motor chairman Venu Srinivasan said incentive and bonus would be paid in September, while increments would be delayed.Sources said some companies like Ashok Leyland have been forthright in paying bonuses, but not announced increments yet.Tata Motors is still to announce its pay decisions for the year.

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