MUMBAI: Amid the cash crunch and delay in disbursement of full salaries to employees, Byju’s has started paying its sales staff on the basis of the revenue they generate for the company every week.
Under the new structure which the company claims is temporary, employees across all levels of the department will get a certain percentage of the revenue they generate for the company by converting their sales leads credited to their salary accounts.Sales associates are eligible to get a 50% share of the revenues whereas for vice-presidents, the payout will be in the range of 1.1-2.4% of the revenues, according to an internal company document reviewed by TOI. This arrangement will be in place till at least May 21.
To put it simply, if a sales associate manages to collect Rs 50,000 in revenue generated from orders through seven days, he will receive Rs 25,000 after the close of the period. While this may help employees of the struggling edtech startup – several of whom are yet to get full salaries for Feb and March – get access to a steady flow of cash in hand, it will also put pressure on them to perform, failing which their earnings will get impacted. The document showed that associates who fail to generate revenues in a week will not get any salary for the period.
“Since the base salary has been suspended, you will not receive any payout or salaries for the given period,” the document said. Byju’s did not respond to queries.
Under the new structure which the company claims is temporary, employees across all levels of the department will get a certain percentage of the revenue they generate for the company by converting their sales leads credited to their salary accounts.Sales associates are eligible to get a 50% share of the revenues whereas for vice-presidents, the payout will be in the range of 1.1-2.4% of the revenues, according to an internal company document reviewed by TOI. This arrangement will be in place till at least May 21.
To put it simply, if a sales associate manages to collect Rs 50,000 in revenue generated from orders through seven days, he will receive Rs 25,000 after the close of the period. While this may help employees of the struggling edtech startup – several of whom are yet to get full salaries for Feb and March – get access to a steady flow of cash in hand, it will also put pressure on them to perform, failing which their earnings will get impacted. The document showed that associates who fail to generate revenues in a week will not get any salary for the period.
“Since the base salary has been suspended, you will not receive any payout or salaries for the given period,” the document said. Byju’s did not respond to queries.