Flipkart has rejigged its increment policy for the current year, splitting the annual salary increases into two tranches rather than have those reflecting in an employee’s pay structure. Further, to check attrition, especially at the senior levels, the company will also roll out 100% bonus to its employees and provide more ESOPs (employee stock ownership plan).
Flipkart has had a spate of layoffs recently and expects these measures to help retain employees across levels.
As per the new policy, which the company has termed as merit-linked payout, if an employee is awarded a 5% annual increment, the overall salary will not reflect the increased amount. Instead, the hike equivalent will be split into two tranches, with the first amount paid out in April and the next in the second half of the year. This will apply to employees who fall in grade 12 and below.
Senior grade employees will receive 100% bonus, as against the 80% they were given last year.
When contacted, a Flipkart spokesperson said, “At Flipkart, we have always prioritised what’s right for both our employees and organisation at large, and this compensation review cycle is in line with this intention. We are providing compensation increases to employees getting promoted, merit-linked payments and bonus payouts. Additionally, our stock option allocation exercise will continue as is, for those who are eligible”.
As part of its annual appraisal cycle, Flipkart is likely to let go of 1,000 employees, or nearly 5% of its workforce, by the end of the current month.