400 Crorepati Employees Created By HUL, ITC and United Spirits; They Are Earning More Than Rs 1 Crore Per Year!
Industry majors Hindustan Unilever, ITC Ltd and United Spirits are in news, as the companies have contributed several crorepati employees to the country’s elite big boys list in the financial year 2021-22.
At a time when attrition rates of different Indian giants are at all time highs and retaining employees, especially in higher management positions are getting more difficult, the three heavyweights of their respective industries, namely HUL (the largest FMCG company in India), ITC (market leader in cigarettes and among the largest conglomerates) and United Spirits (India’s biggest spirits company) added more employees to the country’s crorepati club in FY22.
The three companies in the last financial year (FY22) added more than 130 executives to the prestigious crorepati employees’ club, overall.
A Detailed Look Into What Led to the Jump in Crorepati Employees’ Count
As per the latest annual reports of these three companies, the number of employees earnings an over eight-figure salary in FY22 stood at:
- 220 in ITC, a 44% jump,
- 163 in HUL, a 33% jump, and
- 49 in USL, a whopping 113% rally.
Focusing on what led to this upto a 113% jump in addition of crorepati employees in the last financial year,
- ITC said that the remuneration paid to senior employees rose by 8% in FY22 due to an increment in the senior executives’ count in the fiscal. Also the remuneration paid to such employees exceeded the average remuneration of all employees in the company.
- HUL said that the crorepati employees’ headcount rose because in the current scenario, work force dynamics and employee preferences are rapidly switching amid a highly competitive talent market.
- USL attributed the sharp uptick in its crorepati employees in FY22 to the performance-based pay, stated a report.
“There is heightened competition from startups as well as direct-to-consumer firms to hire talent, especially from HUL. The company has to pay better to avoid attrition of top talent,” said Abneesh Roy of Edelweiss Securities.
“Due to the Great Resignation, market leaders are compensating existing employees much more post Covid-19 than they would otherwise,” as per Shiv Agrawal of the HR company ABC Consultants.