Hero MotoCorp, the largest two-wheeler manufacturer in India, has recently named Niranjan Gupta as its new CEO. Prior to this role, Gupta served as the Chief Financial Officer of the company.
Only one week into his new position as CEO, the company has announced a restructuring of its workforce, including the launch of a voluntary retirement scheme (VRS) for employees, according to a recent press release.
Hero Motocorp Launched VRS for its Staff
The company stated that it launched the voluntary retirement scheme (VRS) for its staff in order to build a stronger organization that can adapt to the rapidly evolving dynamic environment, while still prioritizing the welfare of its employees.
Hero MotoCorp Ltd, the world’s biggest manufacturer of motorcycles and scooters, made the announcement in a recent statement.
The company has been grappling with staff-related challenges for some time now.
In the past two years, it has made changes to the leadership team that directly reports to Chairman Pawan Munjal in an effort to address these issues.
The company has made changes to the heads of several key functions, including marketing, research and development, procurement, human resources, strategy, and electrification, over the past two years.
With the exception of finance and international business, most of these key functions are now led by individuals recruited from outside the organization.
According to insiders at the company, there were discussions even before the appointment of Niranjan Gupta as CEO, that Hero MotoCorp’s then CEO, Pawan Munjal, should have brought in a full-time professional to lead the company.
In addition to this, the company is also working on developing a pool of internal talent in key functions, as part of a succession plan to groom future leaders.
These plans were put in place soon after the appointment of Niranjan Gupta as CEO.
Decisions In the Light of Making the Company Future-ready
According to the company’s announcement, the voluntary retirement scheme (VRS) has been developed to align with their vision of making the organization more agile and future-ready.
The scheme aims to consolidate roles and reduce layers within the company to increase empowerment and agility.
The company stated that they anticipate that the voluntary retirement scheme (VRS) will result in a leaner and more productive organization, thereby improving overall efficiency.
The voluntary retirement scheme (VRS) offered by Hero MotoCorp is available to all staff members and provides a package of benefits that includes a one-time lump-sum amount, variable pay, gifts, medical coverage, retention of company car, relocation assistance, and career support, among other benefits.
The company stated that “The general consumer sentiment is improving, as demonstrated by the sales performance in the month of March.
The positive policies of the government and the social sector reforms have further enhanced the demand scenario, and the two-wheeler industry anticipates these factors to contribute to a double-digit growth in the current financial year.”
