Air India may soon offer them Employee Stock Options (ESOPs) to incentivize its workforce and improve their performance. The former flag carrier was acquired by salt-to-steel conglomerate Tata Group last year and will be the second company in the group to adopt an ESOP policy. In 2018, Tata Motors issued stock options (ESOPs) to its employees, becoming the first company in the group to do so. Air India becomes the second company under Tata to award ESOPs to its employees.
According to those in the know, Air India said Air India will also introduce a key performance indicator for its employees – a benchmark to be used to assess their performance.
The news of Air India workers getting Esops comes days after the airline said it will phase-in restore workers’ salaries to pre-pandemic levels as the airline industry rebounds with the decline in COVID-19 cases in the country.
Why are ESOPs offered by companies?
Organizations often use employee stock plans as a tool to attract and retain high-quality employees. Organizations usually distribute inventories in phases. For example, a company may grant its employees the stock at the end of the fiscal year, thereby providing an incentive for its employees to stay with the organization to receive that grant. Companies offering ESOPs have long-term goals. Not only do companies want to retain employees for the long term, but also want to make them stakeholders of their company.
Earlier this week, in a bid to provide better medical facilities in a large network of hospitals across the country, Air India announced on Monday a group health insurance plan that will be activated from May 15, 2022. fully extensible for both permanent and temporary contract workers and their family members based in India,” the airline said in a statement.
The insured amount would be Rs 7.5 lakh per annum per family (Maximum family size 7 – Employees Spouse/partner + 3 children + 2 parents/in-laws) with a corporate buffer option, to be used by employees. of medical necessity, it added. A detailed insurance policy and network of hospitals will be shared in due course, highlighting all the benefits provided as part of the policy, the carrier added.
A dedicated helpline would be provided for employees to contact the assigned third-party administrator (TPA) who would assist with insurance clarification, claims processing and all other insurance policy questions. “With the introduction of health insurance, workers across the country would receive the support they need when they need it.”
In other news, as of April 1 of this year, flight allowances, special rewards and pilot widebody allowances will be reinstated at 20 percent, 25 percent and 25 percent, respectively, the document said.
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