New Delhi: State-owned Air India is set to clamp down sharply on staff costs over the next three years to sustain its improved financial performance through a rejig in organisation structure and implementation of monitoring systems to better performance parameters of employees.
While staff costs as a proportion of overall expenses are projected to decline to 12.9% from 14.7% in the last financial year, with the new monitoring systems in place productivity per employee is targeted to increase by 23% to Rs 85 lakh in FY14 as compared to Rs 69 lakh at the end of March 2013. According to official data, productivity per employee improved by 18% in the last financial year.
A senior official at Air India said, “We are not only going to reduce our employee expenses by around Rs 300 crore every year but even staff costs as a proportion of overall expenditure will come down to 12.9% this year from 15.2% two years back. This has happened largely because we have rejigged our organisation structure, freezed recruitments and have stepped up focus to enhance productivity of our employees.”
22/12/13 Sharmistha Mukherjee/Business Standard
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While staff costs as a proportion of overall expenses are projected to decline to 12.9% from 14.7% in the last financial year, with the new monitoring systems in place productivity per employee is targeted to increase by 23% to Rs 85 lakh in FY14 as compared to Rs 69 lakh at the end of March 2013. According to official data, productivity per employee improved by 18% in the last financial year.
A senior official at Air India said, “We are not only going to reduce our employee expenses by around Rs 300 crore every year but even staff costs as a proportion of overall expenditure will come down to 12.9% this year from 15.2% two years back. This has happened largely because we have rejigged our organisation structure, freezed recruitments and have stepped up focus to enhance productivity of our employees.”
22/12/13 Sharmistha Mukherjee/Business Standard
