Flipkart tweaks merit approach, converts hikes into payouts
Flipkart has made a one-time change to its increment policy this year, giving merit-linked payouts to all eligible employees in Grade 12 (mid-management) and below, instead of the usual pay hikes.
In effect, employees will get two lump sum payments in April and October this year, equivalent in value to the salary increase that would have otherwise been paid out throughout the year. About 19,000-20,000 employees would benefit from this, a Flipkart executive told ET.
The company will also roll out 100% bonuses to all its employees this year. Employees who are promoted will receive increments as usual, across grades. For the rest of the grades, the company has enabled wider spread of ESOP allocation to drive wealth creation.
The details of the new compensation structure have been sent out by Flipkart CEO Kalyan Krishnamurthy to employees in a letter. ET has seen a copy of the letter.
“The company multiplier for the bonus payout is typically arrived at by measuring the company’s performance against key business parameters, which are GMV, contribution margin, net promoter score, EBITDA and people metrics (attrition and inclusion and diversity)… We have decided to keep the 2023 company multiplier at 100% for all employees (including VPs and SVPs),” the letter said.
“At Flipkart, we have always prioritised what’s right for both our employees and the organisation at large, and this compensation review cycle is in line with this intention. We are providing compensation increases to employees getting promoted,
