For the current year, Flipkart has changed its strategy regarding raises. Instead of having salary increases appear on an employee's pay scale, the company is dividing the yearly increments into two installments. Additionally, in an effort to reduce attrition—particularly among senior staff—the corporation will offer 100% bonuses to employee members and increase the number of ESOPs (employee stock ownership plans).
Following a wave of layoffs, Flipkart anticipates that these steps would help retain employees at all levels.
The new policy, which the corporation is referring to as merit-linked payment, states that an employee's total compensation will not increase by 5% if they receive an annual raise. Rather, the raise equivalent will be distributed in two installments, the first of which will be made in April and the second of which in the second half of the year. This will be applicable to workers who are in grades 12 and under.
Instead of the 80% bonus they received last year, senior-grade employees will now earn a 100% bonus.
Upon being approached, a Flipkart representative stated, "This compensation review cycle is in line with our intention. At Flipkart, we have always prioritized what's right for both our employees and the organization at large." We are offering merit-linked incentives, bonus payouts, and salary increases to employees who get promoted. Furthermore, for individuals who qualify, our stock option allocation exercise will proceed just as it is.
By the end of this month, Flipkart is expected to let go of 1,000 workers, or around 5% of its staff, as part of its yearly assessment cycle.
