A major e-commerce company, Flipkart, has decided not to provide salary increments for the top 30% of its employees for the January-December 2022 performance development cycle in the current fiscal year. This decision will affect almost 4,500 workers in grade 10 and above. Krishna Raghavan, the company’s Chief People Officer, informed employees about the decision, citing the current macroeconomic situation and the necessity to utilise resources prudently while keeping employees’ best interests in mind.
“Given the current macroeconomic situation, we want to be prudent in managing our resources while keeping our employees’ best interest in mind,” Raghavan said in the email.
Thus, only about 70 per cent of the employee base will receive an increase in compensation, and stock option allocation and bonus exercise will continue as usual for those who are eligible. The company’s spokespersons have professed that they are committed to enhancing value for all employees through employee-centric policies, regular promotion cycles, skilling and training programs, and enhanced benefits, including medical insurance.
“Additionally, our stock option allocation and bonus exercise will continue as is for those who are eligible. We stay committed to enhancing value for all our employees through employee-centric policies, continued skilling and training programmes, regular promotion cycles, wealth creation for ESOP holders, and enhanced benefits, including medical insurance,” the spokesperson told new agency PTI.
In spite of the lack of increments for some employees, job security at Flipkart will be intact. Speaking on the condition of anonymity, an employee has confirmed that the communication was related to the performance development cycle of January 2022 to December 2022, and the payout is generally made by March.
This measure by Flipkart underlines the difficulties faced by businesses in the current economic conditions. However, the company’s commitment to enhancing employee value through other means signifies a dedication to maintaining a positive work environment and standing by its workforce.
In response to queries of a media group, Flipkart responded, ” We have always attempted to balance employee and organization priorities, with our actions being driven by what’s right for our people. Given the current macroeconomic situation, we want to be prudent in managing our resources while keeping our employees’ best interests in mind. In line with this, about 70 per cent of our employee base will continue to get increase in their compensation.”
In its statement, the company further added, “We stay committed to enhancing value for all our employee-centric policies, continued skilling and training programmes, regular promotion cycles, wealth creation for ESOP holders and enhanced benefits, including medical insurance. “