Flipkart offers merit-linked payouts to employees this year

E-commerce giant Flipkart has decided to offer merit-linked payouts to its eligible mid-management and below level employees this year as part of a one-time alteration to its increment policy.

This year, Flipkart employees will be offered two lump-sum payments in April and October in lieu of pay rises which would have paid out across the year, ET Bureau reported. Between 19,000 and 20,000 employees at the Walmart-run business will benefit from this scheme. 
 
“The company multiplier for the bonus payout is typically arrived at by measuring the company’s performance against key business parameters, which are GMV [gross merchandise value], contribution margin, net promoter score, EBITDA [earnings before, interest, tax, depreciation, and amortisation], and people metrics (attrition and inclusion and diversity),” said a letter penned by Flipkart’s CEO Kalyan Krishnamurthy to employees, accessed by the Economic Times. “We have decided to keep the 2023 company multiplier at 100% for all employees (including vice presidents and senior vice presidents).”

Flipkart will not alter its employee stock option allocation for eligible individuals. The beginning of the year had seen the business undertake a workforce reduction initiative which is being carried out this March and April and could lead to a reduction in its workforce by up to 7%.