NRC Presentation Fy24-25

[Virtual Presenter] Our organization's success hinges on the collective efforts of our employees. As we navigate continued evolution and growth, prioritizing employee engagement and HR initiatives becomes crucial to fostering a positive and productive work environment. We must collaborate to achieve this goal..

[Audio] Organizations have been providing differentiated increments to top performers, with top performer salary increases being 1.74 times the average increase. This trend has been observed across three in five organizations, which provided more than a 9% increase in 2024. The data also shows a decline in overall attrition rates as the market cools down following the Great Resignation. The overall attrition rate stands at 16.9%, with involuntary exits accounting for 4.3%. Certain sectors, including Automotive, Engineering Design, Manufacturing, and Professional Services, have given higher salary increases, whereas others, such as Technology Consulting and Services and Entertainment & Media, have experienced lower increases..

[Audio] To drive success, we need to develop our people and talent. Investing in their growth and development, reinforcing our values and culture, and building a strong employer brand that attracts top talent are essential steps towards creating a workforce equipped to meet the challenges of the future and help us achieve our long-term goals. By focusing on developing the skills, traits, and behaviors necessary to stay ahead of the curve, we can ensure our organization remains competitive..

Annexures. 4.

[Audio] Our talent retention and engagement strategies have been designed to ensure that we continue to attract and retain top performers. Significant progress has been made in this area, with our Lodha 2022 numbers showing a retention rate of 0.1092, which is higher than the market average of 0.106. This indicates that our efforts are paying off, and we're able to hold onto our valuable employees. We're projecting a retention rate of 0.1082 for 2023, and 0.1 for both 2024 and 2025. These numbers demonstrate our commitment to building a strong and stable workforce..

[Audio] Attrition rates across various companies with revenue between 8000-40000 crores have been analyzed. The results show that these companies have an average attrition rate of 22.29%. Furthermore, it's expected that this rate will increase by 9.6% in the future. Looking at the overall full-year attrition rates, we can see that L0-L2 has an annualized rate of 12.1%, while L3-L5 has an annualized rate of 22.1%. The combined rate for all levels, L0-L5, stands at 20.1%. Recognition, both monetary and non-monetary, work-life balance, fair and equitable treatment in employee rewards, and cross-functional mobility are key measures to retain employees and reduce attrition rates, ultimately leading to a more engaged workforce..

[Audio] The recent market changes caused by the pandemic have led to significant shifts. To address these changes, we implemented a 10.92% salary increase in FY22, surpassing the market average. This move aimed to acknowledge the importance of our key talent and rectify past oversights from FY20 and FY21. We maintained this strategy in FY23, keeping a salary increase rate of 10.82%. For FY24, we propose a 10% increase, matching the industry's growth rate. Our primary goal remains to recognize employee contributions while remaining competitive in the market..

[Audio] The real wage growth has been experiencing fluctuations due to inflation, but it's expected to recover in the future. The salary increase trendline shows a shift from double-digit increments to high single-digit increments. The projected salary increase for 2025 is 9.5%, indicating a stable growth rate. This trend suggests that employees can expect a consistent increase in their salaries over time..

[Audio] During the pandemic, we strategically hired talent from the hospitality sector, where significant attrition occurred due to the industry's downturn. This move enabled us to tap into a pool of skilled professionals seeking new opportunities. However, as the hospitality industry recovered, many of these talented individuals returned to their core sectors, prompting us to reassess our recruitment strategies. Recent studies indicate that industries like automotive, financial institutions, engineering, and real estate are experiencing substantial salary increases, making it increasingly difficult to attract and retain top talent. Our analysis reveals that only one-fifth of participants in this study originated from the retail and wholesale sectors, including hospitality. This trend underscores the need to adapt our recruitment strategies to accommodate the evolving demands of the job market..

[Audio] India Inc. projects a 9.5% salary increase for the fiscal year 2025. The real estate sector is projected to experience a 9.8% growth in salaries for the same period. According to the survey, three out of five organizations provided more than a 9% increase in salaries for the previous year. The sectors with the highest increases were financial institutions, engineering, automotive, and life sciences..

[Audio] The data indicates that overall attrition rates have been steadily declining, returning to pre-pandemic levels. This trend suggests that we're making progress in retaining our employees and creating a more stable work environment..

Attrition trend by Industry. 12. Source: 2023-24 Annual Salary Increase Survey Report, Aon.

[Audio] Our performance distribution trend has consistently shown improvement over the years. In 2020, we experienced a significant jump in top performers, with a differential of 1.7 times compared to Horizon 1. This trend continued in 2021 and 2022, with incremental improvements. Although we saw a slight dip in 2023, our performance remained high. Looking ahead to 2024, we anticipate continuing this upward trajectory. Our increment distribution by performance rating reveals that employees who exceeded expectations received higher increments, whereas those who met expectations received lower increments. We will continue to monitor and refine our performance management system to ensure its effectiveness in driving business outcomes..

[Audio] Our performance curve reveals that we do not meet expectations regarding salary increases. In 2023, our rating was 3.4 percent for "does not meet expectations," and this consistency persisted in 2024. Nevertheless, we propose a change for 2025, striving to enhance our ratings. Moreover, we observe some improvement in meeting some expectations, with a rating of 7 percent in 2023 and 7.1 percent in 2024, indicating our progress toward meeting some expectations. Additionally, we have exceeded expectations in specific areas, with a rating of 51.8 percent in 2023 and 55.33 percent in 2024, suggesting our success in exceeding expectations. Lastly, outstanding performance has been achieved in certain areas, with a rating of 26.2 percent in 2023 and 37.05 percent in 2024, demonstrating our capacity to excel in select aspects..

Management Team. 15. 31+ Shaishav Dharia CEO- Townships, Director- GD' • worked McKinzy & and Logic Tools Prateek Bhattacharya CEO — Wes&rn Suburbs & Thane • Formerty as Associate Pri-tcipd at and Co. Rajib Das President - Eastern Suburbs & Navi Mumbai • Formerty Godrej Group, Ind±lßs Propert•s Tikarn Jain CEO-Pune • Grown at Lo&va 25 of asociatim, last psition held as Head CPT Rajendra Joshi CEO — Bangalore • Formerty assodated with Enterprises, Life»aces Devender Singh Rawat CEO- Platform • Formerty CEO of Bharti Infratel. also w•orked with Eriæsm. Hua&Wi Sushil Kumar Modi Chief Financial Officer • Formerly mrked at G',R. Aditya Biria & JSW Steel Prashant Bindal Chief Saks • pæt of M±ilitiy, Walrnæt India Coca Cda Bever Rajesh Sahana President — • ForrTErty with Gbbacom, Reiarxe Jio. Bharti Airtel, ABN Amro & Bank of Amerca Raunika Malhotra President - Marketirw and Commurücajons • wked witl ECS Linited and Adayana Learning Solutims Janhavi Sukhtankar Presi±nt — Human Resowces • FornErfy held senior posions at Greerveaæ Internatimal India Rajesh Agrawal President - • Formerty as Group CPO at Adani Ent & positions at RI 'SW 27+ 31+ Mgmt. Deepak Chitnis Designer Previwgy as architect at Cmstucbons Pv•t Ltd Rajat Kurnar Singh President- Finance • Formerly mrked Admi Grwp, Relimce Group & GMR Kaikini President — HosWtaIity & Property Management • Formerty assæiated with Taj Hotels. International Dhruti Dholkiaa President— Legal • with Esse md Indospace Mark Griffiths Head — Pre-Consmxtions, QA & EHS • Formerly with Leighton Baul±rstone & Hornibrook coos • Satish S: Ex-Arabte • Shrikanfr K: Ex- • Yogendra B: Ex- LAT • BrÄhan C: Ex-Ar±tec.

[Audio] Our organization has established partnerships with various companies across different sectors such as Real Estate, Infrastructure, FMCG, Financial Institutions, and Hi-Tech/ITeS. These partnerships enable us to leverage their expertise, resources, and networks to drive growth and innovation. By collaborating with these organizations, we can stay ahead of the curve, adapt to changing market conditions, and create new opportunities for our employees..

[Audio] The salary increase projection for FY 23-24 indicates a substantial increment across different categories. Associates undergoing review in India, except those from KAG, are expected to receive a 10.17% increase. Those from KAG will experience a 12.50% rise. The overall merit increment amounts to 10.71%. Furthermore, new joiners who joined between October and February this year will receive a fixed amount of 62.01 crores. The total cost to company for these increments totals 855.09 crores, representing a 10.00% increase compared to the previous year..

[Audio] Our talent planning involves identifying critical roles and skills necessary to ensure our organization's future-readiness. We have established a comprehensive talent sourcing and selection process, where our Talent Assessment Champions play a vital role in discovering unique sources. Following selection, we provide a smooth assimilation experience through mentorship, associate connect, and culture assimilation initiatives. These initiatives include embracing our Lodha Culture Codes, Lodha First, Do good, Do well principles. Moreover, we prioritize talent retention and engagement through programs such as KAG, LOB, and LTI. Furthermore, we invest in senior-level development through programs like Next Big Leaders and ALPHA, while offering mid-to-senior level associates with customized development journeys tailored to their specific needs. We also recognize and reward high-performing individuals through annual talent reviews, identifying top performers and core contributors..

[Audio] The need to attract and retain top talent is crucial for any organization's success. The risk of not being able to do so can have significant consequences. Our current situation shows that we are facing challenges in attracting and retaining the right talent, leading to a high rate of turnover and a lack of succession planning. This is particularly concerning when it comes to critical positions and roles that require specialized skills and expertise. We need to take proactive steps to address this issue and ensure that we have a pipeline of talented individuals who can fill these roles..

[Audio] The risk described in the text is the inability to attract and retain top talent, as well as the succession planning process within the organization. The causes of this risk include the lack of flexibility in customizing rewards for the diverse workforce, aggressive market demand for critical talent, rapid business growth, inefficient leadership sponsorship, and sub-optimal brand positioning. To mitigate these risks, the proposed plan includes implementing a rewards philosophy aligned with market needs, creating a transfer program for L3-L5 and LO-L2 employees, enforcing a culture of caring for employees, focusing on strong communication and branding, developing a robust succession pipeline, and creating a mentor one program. The timeline for executing these plans includes presenting the rewards philosophy implementation plan to the HR team in Q3 of FY24, launching the transfer program in April 2023 and Q4 of FY24, reiterating the culture of caring for employees in Q3 of FY24, beginning implementing the brand positioning and communication plan in Q4 of FY24, and rolling out the succession pipeline plan in Q4 of FY24..