In an attempt to boost the performance of every worker of Air India, the company, recently regained by the Tatas, is soon offering them employee stock options (Esop). The salt-to-steel conglomerate Tata Group acquired the former state-run airline last year. It will be the second company in the group to have an Esop policy.
In 2018, Tata Motors had issued stock options (Esop) to its employees, making it the first company in the group to do so. Air India will become the second company under the Tatas to offer ESOPs to its employees.
Sources in the company say that Air India will also bring in a key performance indicator for its employees — a benchmark to be used to judge their performance.
The news of Air India staff getting Esops follows the carrier’s statement a few days ago that it would restore salaries of employees in a phased manner to pre-pandemic levels as the aviation sector was recovering with the decline of Covid-19 cases in the country.
Companies use Esop as a tool to attract and retain high-quality employees. Corporations generally distribute the stocks in a phased manner. For example, a company might grant its employees the stocks at the close of the financial year, thereby offering its employees an incentive for remaining with the organisation for receiving that grant.
Companies offering Esop have long-term objectives. Companies not only wish to retain employees for the long term with this approach but also intend to make them the stakeholders of their company.
On 18 April, Air India had announced a group medical insurance scheme that would be activated from 15 May — apparently in a bid to provide better medical facilities across a large network of hospitals across the country. “This medical insurance scheme will be fully extendable to both permanent and fixed term contract employees and their dependents based in India,” the airline said in a statement.
The amount insured provided will be Rs 7.5 lakh per annum per family (maximum family size 7 – Employees Spouse/Partner + 3 Children + 2 Parent/Parent-in-Law) with an option of corporate buffer, to be used by employees in case of medical exigencies, the company of the Tatas said.
A detailed insurance policy and the network of hospitals will be shared in due course highlighting all benefits provided as part of the policy, the carrier added.
The Tatas have also ensured a dedicated helpline to be provided for employees to reach out to the assigned Third-Party Administrator (TPA) that will assist in the insurance clarifications, claim processing and any other queries regarding the insurance policy. “With the introduction of the medical insurance policy, employees would have the necessary support at their time of need anywhere in the country.”
From 1 April, flying allowance, special pay, and wide-body allowance of pilots are being restored by 20%, 25% and 25% respectively, the document had stated.