Employee benefits at GCCs move beyond salaries and perks

As the war for talent intensifies, Global Capability Centres (GCCs) are revamping employee benefits to include comprehensive packages that go beyond salaries or perks.

According to a report by Zinnov’s Employee Benefits Study - An India GCC view 2024-25, 95% of GCCs are reinventing their employee benefits. “Benefits stopped being a line item. They have become the culture code a reflection of what companies truly value,” the report said.

This shift can be underscored by the fact that the majority of GCCs are investing up to 10% of their total people costs into employee benefits.

The old yardstick of higher salaries or bonuses no longer guarantees employee attraction or retention. Today’s GCC workforce seeks better benefits such as health, mobility, culture, inclusivity, etc.

“It is about designing benefits that flex with life stages and respond to real needs,” the report noted.

For example, employee wellbeing has moved beyond physical and mental health. There are other items added to this list, which include commute assistance, support for caregivers, and ESG-linked benefits such as electric vehicle leasing or employer-matched donation schemes. New-age employees also measure impact as seriously as income, the report said.

“Benefits are shifting from reactive cost centers to proactive levers of culture, engagement, and performance,” the report noted.

The goal of the GCCs is to show up for values of empathy, intelligence, and intention, and this becomes the differentiator not just as words but also as a belief system within the organisation.

Given the changing profile of the workforce, GCCs are aware that they need to create an environment where employees are able to relate to their work and derive a certain purpose out of it.

Artificial Intelligence (AI) is also playing a role in shaping employee benefit programmes. GCCs are deploying AI in the area of recruitment to ensure there is no bias in hiring and to suggest career aligned training models.

Mobility and transportation benefits for employees is another focus area. The report found that 62% of the GCCs provide transportation assistance to employees, while 91% of those who do not offer formal transportation benefits still provide transport facilities for employees working in night shifts.

Many GCCs are also encouraging eco-friendly commuting options such as carpooling and bike-pooling by offering perks such as preferred parking or financial incentives.

GCCs are also prioritising diversity, and are structuring programmes for women employees, giving them the opportunity to shadow executives to gain first-hand insight into leadership responsibilities, client interactions, and strategic decision-making.

Today, the employee benefits programmes of GCCs integrate rewards, career growth, well-being, and culture. These are not just to attract and retain talent, but to also future-proof their workforce.