Why IndiaMART decided to go the weekly pay way and its salary cost analysis
InterMESH on Sunday, in an out-of-the-box employee-friendly measure, said it will move to a weekly salary pay disbursement regime.
In line with the evolving flexiwork culture and the changing motivational needs of employees, the organisation has taken this revolutionary step to enrich them with stability, purpose, and growth, the company said in a statement.
“With an aim to build a flexible work culture and ensure the financial wellness of our employees, IndiaMART becomes the first Indian organisation to adopt a weekly payout of salaries,” tweeted Dinesh Agarwal, Founder and CEO of IndiaMART.
Speaking about this decision, Dinesh Gulati, COO of IndiaMart, said: “Amidst the rapidly evolving flexiwork culture, instant gratification is what every employee expects. We believe weekly payouts will be appreciated by one and all across the organisation. We had started taking steps in this direction many years back when we migrated to weekly incentive payouts for many roles across the organisation.”
As on March 31, 2021, the company has 2,724 permanent employees and 836 employees on temporary or contractual basis. The median remuneration of employees of the company was Rs 474,996, according to the company’s annual report.
IndiaMART's average increase in the salaries of the employees other than managerial personnel in the financial year 2020-21 was 16 percent ; decrease in managerial remuneration was 8 percent.
Here is an analysis of the company’s salaries from FY14 to FY21:
IndiaMART - Salaries VS Net Sales
"We have strong sales and servicing network, comprising our employees, outsourced representatives, and channel partners operating on telephone, field or digital mediums, that allow us to engage with our current and prospective suppliers with greater effectiveness and develop our customer relationships on the ground." said the company in its Annual Report for FY 2020-21.
The costs of assembling and maintaining the team are significant, therefore its largest expense historically has been employee benefit expense.
Weekly payouts exist in countries like New Zealand, Australia, Hong Kong, and the US.
Taking into account the benefits to the employees, the preferences, and the changing dynamics of the global economy, this initiative to disburse the salaries on a weekly basis rather than monthly was taken by the company, according to the official statement.
It added that paying employees on a weekly basis makes it easier for them to meet real-time fiscal obligations and motivates employees with their purpose in the organisation.
Weekly Payout System goes a long way in helping employees alleviate financial hardships and regain control of their lives – positioning them for success in every aspect.
During the pandemic, IndiaMART was one of the first organisations to implement complete work from home and integrate relevant processes for the smooth operation of the business, ensuring the safety of both employees and customers.
The company provided upskilling and financial assistance programmes to its workforce throughout the pandemic. Beyond their own workforce too, over the past two years, IndiaMART onboarded over 3500 freelancers, including persons with disabilities, women restarting their careers, and aspirants from remote locations through their online associate programme.