How Dabur's 'Applause' Program is Transforming Employee Motivation and Productivity Amid Inflation Challenges

New Delhi: As FMCG companies reel under inflationary and rising input costs pressures, homegrown major Dabur is turning to its employees to improve productivity and cost saving by rewarding them for their engagements in decision making.

Under a program 'Applause,' Dabur is recognizing employees in different categories, including the trailblazer employee, the best newcomer, best suggestion for their actions which are innovative, save cost, promote team spirit, institute new initiative and raise standards of performance.

"Instead of rewarding people on an annual basis, we have devised a mechanism for instant gratification, thereby we would recognize our employees' performance and reward them instantly," Dabur India Executive Director (Human Resource) A Sudhakar said.

It is a step towards continuous motivation of employees, which is aimed at increasing employee engagement level from 67 percent to 72 percent, he added.

Besides, Dabur is looking at its employees as assets that can help withstand the overall testing times in the industry.

"Cutting the headcount is no solution to control inflation, rather it is counterproductive. One should invest money in training and retaining the employees, invest in technology, which would in turn make them productive for the company," Sudhakar added.

The company has earmarked a budget of Rs 50 lakh for the employee reward program.

Besides the regular annual increments and ESOPS, Dabur is giving on-the-spot awards for the demonstration of actions which are innovative, save cost, promote team spirit, institute new initiatives and raise standards of performance.

The rewards include LCD TV, iPod, music system as well as BlackBerry handsets besides a citation.

Explaining the rationale behind the program, Sudhakar said: "The company's growth is at 18 percent. It is nothing but the performance of its employees. Recognizing employees' work instantly would benefit the company ultimately."

Dabur had rejigged its ESOPS, variable pay plan 3-4 years ago for the benefit of its employees, he informed, adding an employee can now have 150 percent in the variable pay plan.

At present, Dabur has 2,600 employees in India and 600 stationed abroad.

The 'Applause' program initiated by Dabur to recognize and reward employees for their innovative contributions and performance is a commendable strategy to boost productivity and motivation within the organization. By shifting from annual rewards to instant gratification, Dabur is fostering a culture of continuous motivation and engagement among its employees. This approach not only acknowledges the efforts of the workforce but also serves as a catalyst for enhancing overall performance levels.

To further enhance employee engagement and retention, Dabur's focus on investing in training, technology, and employee development rather than resorting to headcount reduction is a strategic move. By valuing employees as assets and providing on-the-spot awards for exemplary actions, Dabur is reinforcing a culture of appreciation and recognition within the organization.

The allocation of a substantial budget for the employee reward program, coupled with the introduction of attractive rewards such as LCD TVs, iPods, and BlackBerry handsets, demonstrates Dabur's commitment to motivating and retaining its workforce. By aligning employee recognition with organizational growth, Dabur is not only incentivizing performance but also fostering a sense of ownership and dedication among its employees.

In conclusion, Dabur's 'Applause' program serves as a model for enhancing employee motivation, engagement, and performance through timely recognition and rewards. By leveraging the potential of its workforce and investing in their development, Dabur is poised to navigate challenging industry landscapes while fostering a culture of excellence and innovation.