MullenLowe Lintas Group is putting its money where its mouth is on the people front, rooted in the belief that in a cut-throat and increasingly transactional industry
Group CEO Subbu explains how the Lintas Employees’ Welfare Trust has supported the leadership as it seeks to expand benefits in the areas of healthcare, education, holidays and more to all its permanent staff – and unlock the resultant ‘soft power’.
Close to the end of his notice period, an employee of an ad agency had to be admitted to hospital. Surgery and an extended hospital stay followed. Needless to say, it was highly stressful for the spouse.
“But through all of that, his boss was the rock I needed. S/he not only assured me manpower as help if I needed it, but also, of her/his own accord, did everything needed to get the benefit of the company insurance. I assume s/he took care of the formalities and paperwork as everything was done without me doing anything at all,” says the spouse, requesting anonymity.
What that boss at a MullenLowe Lintas Group agency did was what one would expect of any responsible corporate leader, and then some. The respect it earned the agency in the eyes of its former employee’s family, is priceless.
The act also aligns with what the leadership has set out to do: to empower its employees with meaningful benefits. MullenLowe Lintas Group is putting its money where its mouth is on the people front, rooted in the belief that in a cut-throat and increasingly transactional industry, the soft power that comes with motivated employees who ‘belong’ is a peerless advantage.
The ‘Trust’ Factor
When Subramanyeswar S (Subbu) took over as Group CEO around a year and a half ago, one of the first things he did was to write to the trustees of the Lintas Employees’ Welfare Trust (LEWT), addressing them as the ‘Parents of Lintas’. As the name suggests, the charter of the Trust chaired by former Lintas Chairman and MD Prem Mehta, is to work for the welfare of employees. And, it was sitting on a corpus. Subbu met the trustees to make a compelling case for a common cause.
“The honest truth is that we know how tough the advertising business has become. Agencies fight for the same talent. You lose talent to other industries. You cannot be about salaries alone as an employer. We explained to the trustees the challenges the industry is facing today. After 13 years here, I know that this (Lintas) is an institution; they all feel the same way. And foremost for them is the interests of employees. We explored what more we could do for employees that makes their lives better and gives us a distinctive advantage,” he recalls.
Subbu, who is also Chief Strategy Officer – APAC & Global Chair – Strategy, MullenLowe Group, adds, “We have to be far more than an economic unit of transaction. It’s intangible, but it’s also tangible in terms of the returns. The trustees said, ‘We will always be there to support you. Think of what is going to benefit people and come back to us with ideas.’ They had only one filter: anything the Trust does has to benefit all permanent employees of Lintas – from the CEO or the oldest to the junior-most or newest.”
With the contours outlined, the hunt was then on for things that could give the Group that houses Lowe Lintas and Mullen Lintas, among other agencies, and boasts of a talent pool of over 600 people in India, a ‘soft edge’ as its CEO terms it.
The Soft Edge
Benefits led by vouchers worth Rs.50,000 per year have now grown in scale and substance. While some that existed have been expanded in scope, new ones have been introduced.
Starting sometime in 2023, employees get to holiday for 3 nights/4 days at any Club Mahindra property. Seventy percent of travel expenses up to Rs.50,000 (for trips more than 200 kms one way from the property), besides Rs.3,000 per night for meals at the resort are also reimbursed. The meal reimbursement is now also applicable for the annual holidays that have always been on offer at the group’s Northpoint Holiday Homes near Mumbai.
Perhaps more importantly, there is a push from the HR team to ensure that employees make use of the holidays. The adoption has been healthy and is on the upswing, with bottlenecks like cost of travel being taken care of, we are informed.
A mental health counsellor at work is in place. While the Mumbai office houses a gym and hosts wellness classes like yoga, dance and kick-boxing, employees in other offices can claim up to 50 pc of gym charges or Rs.12,000 annually if they exercise outside. A medical room, mother’s room, and gender-neutral washrooms are now operational across offices.
The hospitalisation and medical expenses cap has increased from Rs.12 lakh to Rs.20 lakh (reimbursement of up to 80 pc), with medical cover recently extended to same-sex partners. Employees can also get outpatient fees for self and family of up to Rs.50,000 reimbursed each year, including for dental treatment.
Each benefit is designed to cater to employees in different life stages, points out Group HR Director Garima Pant.
Among them is reimbursement of creche fees of up to Rs.18,000 for up to
two children till they are four years old. For employees with children with special needs, there is reimbursement of up to Rs.1,00,000 a year for expenses related to equipment, medical support and education.
On the education front, employees could avail reimbursement of up to Rs.10 lakh for higher education for oneself or children, pursuing a professional course or PG, every two years. To be eligible for this ongoing benefit, one had to be on the rolls for three years. That has been cut down to two now. They also need to stay on until the completion of the course. Typically, youngsters make use of the opportunity for themselves, while the older employees tend to utilise it for their children.
Subbu notes that it was necessary for the eligibility period to be brought down to two years, to encourage younger employees to upskill.
Dreams of owning a home or a vehicle are also being assisted. An ‘Interest subsidy scheme’ allows employees to benefit from subsidies on Home, Vehicle, Education, and Home Improvement loans. To get a sense of the quantum, beneficiaries can get an interest subsidy of up to 5 pc of the total interest (up to Rs.5 lakh) on home loans, annually.
These benefits, old and new, are now being presented to employees along with their letters of appointment.
While the push for additional benefits came from the agency leadership, the acceptance and some proactive gestures from the Trust were heartwarming, notes Subbu. For instance, while the case for travel reimbursement for employees was made by the leadership, the Trust surprised them with the reimbursement on meals.
All of this may seem too good to be true, given where the ad agency business model is said to be. With the benefits applicable to every permanent employee, is it sustainable? The benefits will continue and only grow, underlines the Group CEO.
RoI Beyond Motivation
Subbu emphasises that the initiatives being rolled out are for the benefit of the employees and that will ultimately benefit the output of the company. Reiterating that learning has to be continuous, he points to his own level-up with a course from Stanford, supported in part by the scholarship. The digital training, which is among the largest ‘investments’ made in its people by an ad agency, is already bearing results, he notes. Even people from the finance function are being trained by KPMG.
On the Club Mahindra tie-up, Subbu reveals that 40 pc of employees have utilised the offer within six months of launch.
“I feel good about the HR team’s campaign to make people aware of the benefits and nudging them into availing them. When they do, it starts generating positivity and goodwill. When they come back from a holiday and share experiences, it definitely has a positive rub-off,” he notes.
“When an individual grows, as a by-product, the company also grows. You need to upskill people to produce better work. I will view it as an operational expense that we incur,” he adds.
There is acknowledgement that but for the LEWT, some of these ‘operational costs’ could be prohibitive. The leadership has sensed improved employee morale and claims proof of lower attrition. There is an unwavering belief that the intangible positivity will deliver tangible results.
A New People Paradigm
A 6 pc drop in attrition has been possible and some of it could be attributed to the new benefits, says Pant. Having held HR roles across industries from pharma to tech and media, she vouches that some benefits on offer at MullenLowe Lintas Group are rare, if not firsts.
The average employee age is getting younger, in sync with the audiences the agencies create communication targeted at. The average pay range is getting better, with a specific focus on the entry level. There is renewed thrust on attracting and accommodating interns to get the agency experience out onto campuses, including some that no longer view advertising as an option.
Subbu is also keen to ensure that there is balance on the gender front. The number of women employees is over 42 pc now, marginally up from a year ago. This has been led by a significant jump in the creative function, 31pc of which is now women.
Pant explains that whether it is the young for whom holidays are an intrinsic part of life, or young mothers for whom childcare is a lifeline, the intent is to be relevant to individual needs.
“Besides the brand that is Lintas, people also see that we provide a sense of security. For example, it is not just about the holiday cost. We will ensure that they get the time off for that holiday. That is in an industry that is notorious for not giving them that time off,” she adds.
Dipsticks and employee feedback are giving HR the confidence that they are onto something. What Pant and team are hearing is the sense that ‘The organisation stands besides me’.
“Even in their exit forms, people are talking about the Trust and the benefits,” she notes.
“Somewhere, my hope is that people are seeing the benefit of it – that the company is investing in every individual’s growth. I would like to believe that when we hire someone at Lintas, we hire the entire family,” reflects the Group CEO.
In end-December 2023, a box of goodies went out to the families of all employees with a note from him that read: “Thank you for the gift that you have given Lintas.” Some parents (in the case of single employees) wrote back saying it was good to know their child was doing well. For many parents, advertising remains an enigma.
“We want to treat people with dignity. We want to show them that we respect them, value them as an asset. We want to tell them that they are important to us – because they are. They are the most important asset that we have,” adds Subbu.
The more empowered they are, the more powerful the agencies will be, is the conviction.
“Lintas has been around for 85 years. Every generation of leaders did amazing things that got passed down. I want to leave it in a better place than when I inherited it. I want to ensure that people feel motivated, to the best of my ability,” surmises Subbu.
Towards the end of August 2024, the MullenLowe Lintas Group will host a rather special event for employees from across its offices. Secretaries, admin and support staff will be brought in to the Northpoint Centre of Learning. People usually facilitating others’ travel and making work lives comfortable will be the ones travelling and being hosted, for a change.
It is a statement of recognition that they also serve, in roles no less critical than others. It is also a gesture of gratitude from the top, guided by a Trust that views every employee as an equal.
(The article is authored by Gokul Krishnamoorthy and was first published on Financial Express BrandWagon)