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.”
Read news in full 22/12/13 Sharmistha Mukherjee/Business Standard
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