Hero MotoCorp announces Voluntary Retirement Scheme (VRS) for employees
The world’s largest two-wheeler maker by volume, Hero MotoCorp has announced the voluntary retirement scheme (VRS) for its employees, in a regulatory filing. The company said that the move was made with the “objective of building a robust organisation in a rapidly evolving dynamic environment while retaining employee welfare at its core."
Hero said that the VRS will apply to all staff members and offers a “generous package" that includes a one-time lump-sum amount, variable pay, gifts, medical coverage, retention of the company car, relocation assistance, and career support, among other benefits.
Also Read : Hero MotoCorp reports 8% growth in FY2023 with 5.3 million two-wheelers sold
In its statement, Hero said that the VRS has been designed to make the organisation agile and future-ready, which will require consolidating roles and reducing layers to increase empowerment and agility. This move, the company says, will help improve efficiency through a lean and more productive organisation.
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The announcement comes as Hero’s top management saw a rejig recently. The company appointed Niranjan Gupta as its new Chief Executive Officer (CEO). Gupta previously served as the Chief Financial Officer (CFO) at the company. Meanwhile, Dr Pawan Munjal continues as Executive Chairman and Whole-time Director on the board.
“The general consumer sentiment is improving, as reflected in the sales performance in the month of March. The constructive policies of the government and the social sector reforms have given a further boost to the demand scenario and the two-wheeler industry expects these factors to contribute towards a double-digit growth in this financial year," the statement from the company said.
Hero sold 5.3 million vehicles in FY2023 growing by eight per cent year-on-year. While domestic sales showed steady growth, exports for the manufacturer declined in the last fiscal.