Analysing Humongous Bonus Distribution by Surat Diamond

Publishes in New Business Age Magazine, November Issue 2014,  http://www.newbusinessage.com/issuedetail/991)

Last week came incredible business news that amazed many people in India and abroad. This news was about an Indian diamond based business company, named Hari Krishna Exports, giving generous bonuses to its employees. The company gifted nearly 500 Fiat Punto cars, 200 two-bedroom houses and jewels to 1200 staffs, all told, a worth of 50 crores.  The company gave these “as part of reward for loyalty program for employees who performed best for last five years”, according to the company chairman and MD Savji Dholakia.

Picture of the reward distribution program: taken from ibtimes.co

In the contemporary business world where organizations are driven by profit via cut-throat competition, this model of giving enormous amount of profit to employees is taken by surprise by many people.  Let look at different aspect of the news and its impact.

• By giving enormous bonus to its employees, this company has earned humongous popularity that wouldn't have been possible even if it had allocated the monetary worth of bonus to advertising.   
• As I googled to learn more about Surat Diamond business l, I got many Google pages that would be with heading such as: “Diwali Bonus-500 CARS, 200 Flats and Jewels”. This is a unique social business model that the business world has seen of now and can be a benchmark model for others wanting to adapt this model.
• This can also be related to as an exemplary form of Corporate Social Responsibility (CSR). As Richard Branson has defined business as” trying to make a real difference to other people’s life”. In this connection, the real “business” of a business should be caring of its employees, and in fact, this is the starting point of a sound CSR.
• As I read this news, I thought about how amazing it would be to work in company like this. And this might be what most of the employees who read the news be thinking as of now. What I am sure is that, this particular company has been Dream Company for many employees of the industry and prospect employees. The direct impact is, the retention will be high and the company at the same time can attract the talented personnel of the industry also.
• Another important thing here is that the bonus was given to 1200 employees based on their preference. Those who didn't have home were gifted with flats, those who had home were rewarded with cars, and those having both cars and home were gifted with jewels.  As such, it encourages the existing companies to have reward preferences options when they design any reward program from their employees.

Looking at the big picture, HariKrishna Exports can realize in next few years are: increased sales, increased client base, high employees retention and performance, increased brand awareness of the company, and increased job applicants. Well, the advantages that it is going to reap are in manifold times greater than the cost incurred for achieving it.