P&G introduces a new and improved rewards programme


The annual CEO-nominated stock award programme for top performers will make way for guaranteed cash rewards. 

The present day competition is not just among talent-seeking opportunities but among organisations seeking the right talent. In times like these, organisations need to be very people oriented while designing policies and practices. A lot of organisations are now stepping forward to amend existing policies, making them more employee friendly, and also initiating new practices to enhance employee satisfaction.

In a similar move, with an intention to encourage performance and keep the employees motivated at all times, Procter & Gamble, the world’s largest consumer goods firm, is now planning to revise its compensation structure.

One major change would be that the annual CEO-nominated stock award programme for the top-performing staff will be replaced by guaranteed cash rewards. These rewards will be closely linked to individual performances and would be independent of the stock price movement. A P&G India source shared that it also plans to change the rewards system such that the annual bonus programme will be driven more by the specific results of an individual business team or a group, compared to the corresponding global business team.

At P&G, the performance incentives are not just restricted to the annual cycle any more. The top performers can receive them at any time between six and eleven months, based on their business results. This practice has resulted in an improved talent influx as the company’s hiring at entry level increased by 50 per cent compared to the previous year. Therefore, the company is also considering mid-career hikes to ensure the best recruitment.

In an official report, the company spokesperson shared that, “India remains a critical market for P&G, and is growing faster than the balance of the company’s global portfolio. In the last 18 months, P&G India has become profitable and the value accretive results that India has delivered have contributed positively to the health of the parent company”. Empowering regional businesses, P&G global CEO, David Taylor, at an investor conference earlier this year, also said that the company will move away from its global and centralised organisational focus.

P&G has been focussing largely on its consumer products, identifying and getting rid of the lesser selling ones to broaden margins, while pushing sales for the popular ones. P&G India reported high single-digit sales growth in the January–March quarter, in segments that are strategically important for it — which make about 85 per cent of its portfolio. Considering these figures, the current move of enhancing the compensation and benefits structure comes at the ideal time, and is sure to reflect in employee motivation and subsequently, better business results.


  1. Very nice initiative.. times have changed when recognition is “once in a year “.. performers should be rewarded on a periodic basis . This will keep the motivation to perform continuously

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