Mumbai: All of e-commerce major Flipkart‘s employees will not receive annual compensation increases the regular way this appraisal season.
The company will instead offer merit-linked payouts to eligible employees, where employees will get their increments in two tranches – one in April and the other in Oct. Simply put, if an employee gets a 10% raise, the increase will not be reflected in their monthly salary as is usually the case. The salary hike will be paid in two lump sum instalments. The merit-linked payouts will be handed out to employees in the mid-management category and below.
“Employees who are being promoted will receive increments as usual, across grades… for the rest of the grades, we have enabled wider spread of ESOP (employee stock ownership plan) allocation,” CEO Kalyan Krishnamurthy said in an email to employees on Thursday. TOI has reviewed a copy of the email. A source aware of the company’s thought process said the firm sees more value in paying out hikes in bulk tranches. Flipkart has decided to let go of some 1,000 employees or 5% of the workforce as part of its annual performance review process, TOI had reported in Jan.
The Walmart-owned company, which claims to have had robust growth in 2023, will however roll out 100% bonus to employees.
Krishnamurthy said that 2023 has been a strong year for the firm. In the current year, the company will identify and take on new opportunities, he said, without disclosing any details.