Our human resource management systems and processes aim to create a responsive, customer-centric and market-focused culture that enhances organisational capability and vitality. Our unique employee value proposition backed by strong corporate equity enabled attraction and retention of quality talent in a buoyant market.

During 2007-08 our full time direct employees numbered over 25,000 of which nearly 2,300 employees in the Leaf Tobacco business were engaged on a seasonal basis due to the very nature of the business.

The different value chains related to our businesses provided indirect employment to over 5 million people, whose livelihoods were substantially linked to their association with the Company. Indirect employment covers the supply and distribution network, agri-sourcing, social and farm forestry, e-Choupals, women's empowerment and micro-enterprises and livestock development.

Over 12,000 of our direct employees are members of various unions. During the reporting period, two units signed long-term agreements with the recognised unions. Employees were aligned and involved in the implementation of significant investments in technology and process improvements aimed at enhancing productivity, quality and delivery effectiveness. The harmonious relations at all operating units is a reflection of the Company’s approach to employee engagement focusing on a collaborative approach and mutuality of interests.

Company policies and Individual contracts of employment apply to management and frontline supervisors and the terms and conditions of their services are reviewed periodically.

Our remuneration philosophy aims at recognising performance which also facilitates attraction and retention of talent. This is reflected in the total employee cost of Rs 730 crores during 2007-08, which represents a 16% compounded annual growth in ‘employee costs’ over the last 3 years.

The market for talent continued to be extremely competitive. An integrated approach to management of human resources focusing on strategy, systems and culture enabled us contain attrition across categories and businesses to 13% during 2007-08. Our experience with retention amongst middle and senior management was very encouraging, reflecting on the one hand, our ability to meaningfully engage employees and on the other, their sense of ownership and commitment.

In line with our focus on continuous learning and development, over 78,000 man days were invested in formal training of employees across businesses and employee categories. In addition, significant investments were also made on on-the-job learning supported by inputs from superiors and other colleagues. Relevant training and our orientation was also provided to employees of service providers.