Embattled edtech firm Byju’s has drastically reduced the fixed pay for new sales hires by 90 percent, as per a report by Inc42.
Offer letters given to various inside sales associates reveal a total compensation of Rs 4 lakh per annum, which includes variable pay, says the report. The letters reportedly indicate a fixed pay of Rs 1.15 lakh per annum and a performance-linked variable pay of up to Rs 2.8 lakh per year.
Amidst a financial crunch in the company, the ed-tech firm recently linked the salaries of the sales staff with the revenue that’s generated by them every week.
Read: Baron Capital Cuts Byju's Valuation by 99% to $120 Million
At the end of the seven-day period, Byju's would directly pay a portion of the weekly revenue each sales staff member generates. As per MoneyControl, Byju’s shared a document with their employees where they said, “Starting immediately, 50 percent of the upfront weekly collection will be directly disbursed to our sales associates every week for the next four weeks. For instance, if an associate successfully collects Rs 50,000 in revenue generated from orders between April 24th and April 30th, they will receive Rs 25,000 on May 1.”
On its website, the edtech firm reportedly has several openings for the position of sales associate, where the remuneration is given as Rs 4 lakhs. However, what is not mentioned is that the majority of the salary depends on sales performance.
This is in sharp contrast to the Inside Sales Associate job posting made by the company six months ago, where the edtech firm highlighted that they would pay Rs 7 lakh, with Rs 4 lakh as the fixed pay. Similarly, for the post of Business Development Associates (BDAs), Byju's has reduced the salary to Rs 7 lakh now from Rs 10 lakh in late 2023.
