Byju’s links salary to weekly revenue amid cash crunch
BENGALURU: Amid cash crunch edtech firm Byju’s has now linked sales team salaries to the revenues they generate every week. This new policy comes at a time when the cash-strapped company is struggling to pay salaries to its employees.
As per sources, the company has internally announced the implementation of a new incentive structure for its sales workforce across all levels and this will encourage the sales team to bring in new enrolments as May and June are peak business periods for the company and also inbound lead volumes are highest during this period.
The new model is being launched as a pilot programme and comprehensive training has been provided to sales teams to ensure a smooth transition, sources said. This new incentive structure is applicable to the company’s Inside Sales & Byju’s Exam Prep teams.
Under this performance-based model, sales employees at the associate level will earn 50% of their achieved sales revenues on a weekly basis. Also, the performance incentive scheme applies uniformly across all levels, from entry-level sales associates to vice presidents. For instance, if an associate successfully collects `50,000 in revenue generated from orders between April 24 and 30, they will receive `25,000 on May 1.
Sources added that this initiative aims to create a win-win scenario amidst the company’s current cash flow challenges. By directly linking pay to performance, high-performing employees have opportunity to increase their earnings beyond their annual CTC.
In an internal document, seen by TNIE, the company said the policy will be applicable for a period of four weeks from April 24 to May 21 and the amount disburse will be adjusted against any pending salaries owed to the employees. Also, base salary has been suspended for associates and they will not receive any payout or salaries during this period.
Incentivises high performers
New model is being launched as a pilot programme and training has been provided to to ensure a smooth transition, sources said. This new incentive structure is applicable to the company’s Inside Sales & Byju’s Exam Prep teams. By linking pay to performance, high-performing employees have opportunity to increase their earnings