E-commerce platform Flipkart decided to take a different approach for its employees this year. Instead of providing a hike, the platform will give merit-based pay out to its mid-management or Grade 12 employees this year.
According to the Economic Times (ET), about 19 to 20,000 employees will benefit from it. So instead of getting the usual hike, employees will be getting two lump sum payments in April and October, says ET. This is equivalent to the salary raise they would have received throughout the year.
In a letter to the employees, Flipkart Group Chief Executive Officer Kalyan Krishnamurthy said that the aim of this is to recognise the performance and effort put in by all the employees. According to Mint, Krishnamurthy told the employees, “Instead of usual compensation increases, we will be delivering merit-linked payouts to all eligible employees in Grade 12 and below. These merit list payouts shall be made as two lump sum payments in April and October this year, equivalent in value to the merit increase that would have typically been paid through the year.”
In the letter, Krishnamurthy also highlighted that 2023 was a strong year for the company, with the launch of several categories as well as products for customers. Talking about his optimism for 2024, as per Business Standard, he said, “In 2024, we look forward to identifying and taking on new opportunities with even more zest and agility, with the intention of creating the most positive impact on the ecosystem.”
In January, Flipkart announced it would fire 1,000 of its employees, or 5 percent of the work force. This was a part of the annual performance review. Similarly, in 2023, the company decided to freeze 30 per cent of its staff, which included senior leadership. The e-commerce platform attributed it to the tough macroeconomic conditions.
