From the desk of Miss Know-All: Dating Allowance! Staff retention... at what cost?

(Published on 12 December 2006 in 'Women at Work' - W @ W - a supplement of the Daily Mirror, Colombo, Sri Lanka)

Given the current demand for skill, HR heads of multinationals are getting their knickers in a twist about retaining a committed workforce. Finding and keeping good people is always a major concern. As corporate loyalty and commitment are in short supply, a great workplace culture is the need of the hour. Organisations are now looking at innovative changes in the workplace and work culture and improved ways to motivate their staff.

Recently, there was much hue and cry in the press when a leading Indian company was accused of giving its employees a ‘dating allowance’. One had heard of HRA, LTA, Medical, Transport and Dearness allowance... but what in the world was a ‘dating allowance’?

A case was filed by Tripti Nigam against Wipro, India's third-biggest software company under the new Domestic Violence Act alleging that her husband Gaurav Nigam had deserted her because the company paid him a ‘dating allowance’. Tripti, who lives in Kanpur, alleged that Wipro paid her husband an allowance for dating and this was leading to ‘moral degradation’. While Wipro officials went blue in the face denying that they gave employees ‘dating allowance’, the whole incident has brought to light something that is still very new to the Indian corporate world.

Dating Allowance is the latest to join the list of incentives being offered to employees. More of a trend in the US, this new allowance has now made its way to India as well. Believed to be an essential addition in times of long stressful work hours, a dating allowance is typically aimed at promoting inter-personal communication and possible long lasting relationships, within the office. The philosophy behind the initiative is to show that the company wants to participate in the lives of its employees. Whether a company should participate and interfere in the lives of their employees to such an extent is debatable… as well as a personal choice.

Staff turnover costs companies dearly. But staff retention… at what cost? A driving factor of the employee’s loyalty is the company’s well-planned and executed package of benefits. These days among the perks are on-campus fitness centres, lap pools, tennis courts, basketball courts, and volleyball courts. Company hosted events are organised to help build camaraderie. The benefit package includes flexible work hours. While recreational activities have nothing to do with improving the employee’s job performance, companies recognise that such activities help employees grow personally. Organisations actively encourage off-the-job activities, which include scuba classes, yoga classes, dance classes and ski-resort getaways.

However, employee retention efforts are not all focused on fun and games. Competitive compensation packages which include not just the salary but bonuses, stock options, and the traditional health and retirement package are other tools that help keep employees onboard. Both communication and staff development are crucial. A communication plan needs to be devised to keep employees apprised of company performance and business objectives. A company needs to be committed to employee education and respond effectively to their needs. Rewards and recognition can be powerful tools and are proving to be effective especially when recognition is linked to personal needs such as time off, job sharing, flex-time, office space, special tasks and public acknowledgment.

Attention to retention should be a constant, ongoing process. Nurturing staff should be a non-stop, day-to-day activity. We are no moral police to judge if this new perk called ‘dating allowance’ is appropriate or not... for at the end of the day isn’t it up to the employee to decide how he uses his allowance… irrespective of what name it is given.

Zig Ziglar makes an interesting observation on employee motivation - “People often say that motivation doesn't last. Well, neither does bathing - that's why we recommend it daily.”

Miss Know-All
miss.know.all@gmail.com