Flipkart Rolls Out Employee Stock Options
Expressing Employee Value?
India’s leading e-commerce platform, Flipkart, has rolled out Employe Stock Options (ESOP) to a third of its employee force. This is being seen as a milestone move by many in the industry for the company led by Binny Bansal and Sachin Bansal.
What is an ESOP?
An ESOP is an offering a company makes to its employees in order to retain the talent and keep them feeling well-remunerated for their on-going efforts. It is a benefit plan under which an employee acquires shares or a certain percentage of ownership in the company. Typically startups that cannot pay much, attract employees with such benefits. Also, with ESOP in hand, an employee feels more integral to the company’s success.
Flipkart’s Strategy to Retain Important Talent
Chief People Office and Strategy Head, Nitin Seth, believes that this has been one of the most significant moves by the company. Almost 40% of the employees now have stock options and promotions. This ESOP is more than what has been offered previously by Flipkart to its select few. Nitin Seth also claimed the program to be more penetrating than before because the aim of Flipkart is to attract and retain the major talent pool. The company has also been experimenting with paying its senior staff with stock options. How will this further boost Flipkart’s business remains to be seen.
What can other competitors learn from this move? Share your thoughts in the comments section below.
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