Flipkart revises increment process with merit-linked hikes for employees

Flipkart has made changes to its salary increment policy in a bid to tackle employee attrition, particularly among senior staff members.

The company has announced that instead of traditional annual salary increases, it will now split the increments into two parts.

In a letter addressed to its employees, Flipkart explained the new compensation structure. Under this arrangement, if an employee is due for a 5 per cent increment, the full amount will not immediately reflect in their salary. Instead, the increment will be divided into two parts, with the first part being paid out in April and the second part later in the year.

This new approach, termed as “merit-linked payouts” by the company, is aimed at retaining talent across different levels within the organisation. Employees who are promoted will continue to receive their increments as per the usual practice, irrespective of the changes to the increment policy.

Additionally, Flipkart has announced an enhanced bonus scheme for its employees. Unlike the previous year where employees received an 80 per cent bonus, this year they will be entitled to a 100 per cent bonus.

“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, merit-linked payments and bonus payouts. Additionally, our stock option allocation exercise will continue as is, for those who are eligible,” said Flipkart spokesperson.

These changes come amidst reports of recent layoffs at Flipkart. The company hopes that these measures will help in maintaining a motivated workforce and reducing attrition rates, especially among senior employees.