Coal India goes the private sector way, will follow merit-based promotion policy to retain talent
Coal India, the country’s third largest employer with 3.4 lakh employees, has decided to follow a private sector-like approach to its promotion policy, placing emphasis on a performance-based approach rather than a senioritybased one, a move the state-run organisation believes will help it retain talent.
It is planning to implement the system in Coal India and its subsidiaries by December this year because the company feels that when the sector is opened up in the near future,it would be difficult to hold back talent if merit is not rewarded, which in turn, will affect its production target.
“Coal India needs to revamp the promotion policy to stress on the merit system and fast track promotions of high potential executives. At present, promotions are based on interview only from the E-7 level onwards, while the rest are based on seniority. Seniority-based promotions will deprive high performers and will only promote mediocrity in the organisation,”