Flipkart converts hikes into payouts, rolls out 100% bonus to stem attrition
MUMBAI : E-commerce platform Flipkart has rejigged its increment policy, splitting annual salary increases into two tranches rather than have those reflecting in an employee’s pay structure. In an effort to plug attrition, especially at the senior levels, the company will also roll out 100% bonus to its employees.
According to a senior executive, the Bengaluru-based e-commerce firm in a letter detailed out to its employees the new compensation structure. Flipkart recently has had a spate of layoffs and these measures are expected to help retain employees across levels.
Under the new policy, if an employee received a 5% increment the new overall salary will not reflect the increased amount. Instead, the hike equivalent will be split into two tranches, with the first paid out in April and the next in the second half of the year.
These will be “merit linked payouts”, the company said in its letter, which Mint has reviewed. Employees being promoted will get “increments as usual across grades”, it said.
However, Flipkart’s employees will receive a 100% bonus, as against the 80% they were given last year, excluding those at the levels of senior vice president and above.
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Published: 21 Mar 2024, 02:23 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.