Speaker: Amitav Mukherjee

1. Using Benefits as a Differentiator
NHRD Compensation & Rewards
Summit

2. How do you create differentiation
Creating
experiences Quality &
v/s providing Execution
facilities excellence
Sources of
Differentiation
Degree of
customization Inimitability
Disruptive cost
advantage as a
result of
aggregation

3. When is Differentiation Effective
Alignment with the Employee Value
Proposition

4. Aligning Benefits to EVP
The ITC Way
Proposition HR Implication Benefits Practice
•Offer Careers v/s Jobs •Long Term Engagement •Define Benefits Pension Scheme
•Build, Invest & Develop Talent •Post-Retirement Medical Benefits
•Experiencing role variety •Talent Mobility •Company owned residential
across locations / business •Flexibility communities
pivotal to building leadership •Remote & Metro •Relationships with educational
Locations institutions
•Company managed re-location
•Dual accommodation for transitory
periods
•A community of colleagues •Engagement beyond the •Company supported socialization
and families work place events and celebrations in residential
communities
•Reimbursement for consumption of
Company products and services

5. Aligning Benefits to EVP
The ITC Way
Proposition HR Implication Benefits Practice
•Extensive support on matters •Policies that provide for •Company managed medical scheme
of employee health the best-in-class care •Unlimited medical support for
•Trust based systems employee and family
•High Cost, Great value •No loss of pay account health related
absence from work
•Promote and value ‘balance’ - •Provide opportunities to •Extensive sports facilities at all
Employee wellness, nurture interest outside residential complexes and some office
professional development work complexes
improve effectiveness •Company provided Club memberships
•Educational Assistance – fee
reimbursement, time-off, stipend
•Inflation Protection •Company bears the cost •Company provided travel facilities
uncertainty •Cashless medicals, on actuals
•Housing provided by Company

6. Aligning Benefits to Human Capital Strategy
Externalization Internalization
Idiosyncratic Human Core Human Capital
D A
Capital • Mode: Knowledge work
• Mode: Partnership
high
Relational
• HR: Commitment-based
• HR: Collaborative - staff based on potential
- select on past experience - develop (firm-specific)
- develop the relationship - Extensive pay & benefits
- evolving scope - Promote flexibility, learning
- rewards for ideas - Greater degree of customization
- Benefits, if any, limited to - autonomy / self-direction
Uniqueness
requirements of the job
Ancillary Human Compulsory Human
C B
Capital Capital
• Mode: Contract work • Mode: Traditional job
Transactional
WARNING: These • HR: Compliance-based • HR: Productivity-based
general trends - standardize/simple (outsource) - staff based on current skill
may not be - focus on rules & procedures - Market wage and benefits
appropriate for - narrow scope, hourly pay - Benefits directed to improve
low
your particular - Benefits limited to statutory productivity
circumstances. requirements - focus on ST performance
- mistakes above the water line
Lepak & Snell, 1999 low Strategic Value high

7. Thank You