Source | The Times Of India : By Anumeha Chaturvedi & Rica Bhattacharyya
W DELHI/MUMBAI: With the funding frenzy cooling down and concerns of a valuation bubble rising, India’s tech startups and e-commerce companies are cutting back on plum joining bonuses.
“Joining bonuses, used to lure quality talent fast, are being offered to about 10% of the staff now from 30%-40% a year ago,” said Anshuman Das, managing partner at executive search firm Longhouse Consulting. “Earlier, it could have been about 15% of the CTC (cost to company, or total money an employer spent on an employee including all benefits in a year), but now it has come down to about 6-7%,” he said.
“Companies are waiting and operating on budget optimisation principles,” Das said.
Search firm executives said companies such as Flipkart, Ola, Snapdeal, Uber, and Quikr have all slashed joining bonuses, increasingly wanting to link pay to performance. Mails to Flipkart, Ola, Uber and Quikr were unanswered as of press time on Thursday while Snapdeal declined to comment.
Experts said e-commerce companies have become prudent as they are under pressure from investors to focus on profitability.