India’s biggest two-wheeler maker Hero MotoCorp has recently appointed a new CEO, Niranjan Gupta, who was previously the Chief Financial Officer of the company.
Just a week after he assuming the role of CEO, the company has decided to restructure its staff. In the press release, the company said that it has launched a voluntary retirement scheme (VRS) for its employees.
Hero Motocorp Launched VRS for its Staff
Citing the rapidly evolving dynamic environment, it said that “In keeping with the objective of building a robust organization in a rapidly evolving dynamic environment while retaining employee welfare at its core, Hero MotoCorp Ltd, the world’s largest manufacturer of motorcycles and scooters, today launched a voluntary retirement scheme (VRS) for its staff”.
It has been a while that the company has been trying to manage staff issues. Over the last two years, it has changed the leadership team that reports to Chairman Pawan Munjal.
The heads for marketing, R&D, procurement, HR, strategy, and electrification have been changed. Almost all key functions, barring finance and international business, are now led by people hired from outside the organisation.
It has been said in the company circle that long before the appointment of Gupta, then CEO Munjal should have brought a full-time professional CEO to steer the ship.
The company is also trying to groom a pool of internal talent in key functions to take on leadership roles in the future as part of a well laid-out succession plan, just after the appointment of Gupta as CEO.
Decisions In the Light of Making the Company Future-ready
In its release, the company said that the VRS has been designed in line with the vision to make the organization agile and ‘future-ready’, consolidating roles and reducing layers to increase empowerment and agility.
It said that “We expect this to improve efficiency within the Company through a lean and more productive organization”.
The VRS is applicable to all the staff members and it offers a package that includes – among other benefits – a one-time lump-sum amount, variable pay, gifts, medical coverage, retention of company car, relocation assistance, career support etc.
The company said that “The general consumer sentiment is improving, as reflected in the sales performance in the month of March. The constructive policies of the government and the social sector reforms have given a further boost to the demand scenario and the two-wheeler industry expects these factors to contribute towards a double-digit growth in this financial year,” the company said.