On April 5, 2023, Hero MotoCorp, the manufacturer of two-wheelers, announced the introduction of a voluntary retirement scheme (VRS) for its employees. The VRS has been designed to align with the company’s vision of making the organisation more agile and prepared for the future.
The scheme aims to increase efficiency by consolidating roles, reducing layers, and enhancing empowerment and agility within the company. The announcement of the VRS follows the appointment of Niranjan Gupta as the new CEO. He previously served the organization as its CFO and Head, Strategy and M&A.
All staff members of Hero MotoCorp are eligible for the VRS, which includes a generous package consisting of a lump sum, variable pay, gifts, medical coverage, retention of the company car, relocation assistance, career support, and other benefits. The company has six facilities in India, one each in Bangladesh and Colombia, and had a total of 9,173 permanent employees, including workers defined under the Factories Act, 1948, as of March 31, 2022.
According to the company’s annual report, its employee cost has increased nominally by 1.9 percent due to an increase in counts and the impact of annual increments. In the financial year 2022, Hero MotoCorp spent Rs 1,935 crore on employee benefits, up from Rs 1,899 crore in FY21, while its total expense for FY22 was reported to be Rs 26,552 crore.
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