Source | www-moneycontrol-com.cdn.ampproject.org | SWARAJ BAGGONKAR
The sharp rebound in sales from July saw companies untie their purse strings to reward employees. While some stuck to their annual increment cycle with a Covid-induced delay of about a quarter, others have already started with a second round of pay hikes, effective from the upcoming financial year. Here’s what Hyundai, Bajaj Auto, JK Tyre and Ceat are doing
With factories running at peak capacity and companies struggling to meet demand, it’s probably the best time to be an employee with an automotive company. The better-than-expected turnaround in demand has made automotive and auto parts makers to not only roll back salary cuts but also reward employees with increments.
Senior executives and board members of some companies had adopted voluntary pay cuts during the start of FY21 following depressed market conditions brought on by the Covid-19 pandemic. Auto sales (across all segments) crashed 75 percent during the April-June quarter to close at the lowest level in many years following a strict lockdown.
But a sharp rebound in sales in the July-September quarter (only 1 percent drop against the same quarter last year) saw companies untie their purse strings to reward employees. While some companies stuck to their annual increment cycle with a Covid-induced delay of about a quarter, others have already started with the second round of pay hikes, effective from the upcoming financial year.
Hyundai
India’s second largest carmaker Hyundai Motor India (HMIL) will start its performance appraisal process from February. Sources say the grading process will start shortly, followed by actual increments from April. “There were no salary cuts at HMIL at any level. In fact, everyone got a raise in August,” said one of the sources cited above.
