Flipkart has resorted to the time and tested idea of Esops in order to retain its key talent for coping with increasing competition in India’s ecommerce sector. According to Economic Times (ET), India’s home grown e-commerce giant has issued fresh tranche of Esops to its senior as well as middle-level staff. Esops have also been reportedly issued to the employees of Myntra-Jabong – the subsidiary and fashion unit of Flipkart.
ET claims that Flipkart had recently concluded its annual performance assessment programme and decided to dole out fresh set of Esops to some of its high performing employees. The shares have been priced between the price range of $125-130 per unit. 25% of these stocks will vest after a year and thereafter monthly vesting will carry on for the period of three years.
It must be noted that vesting period is the period between issuance of Esop shares and when the shares are fully acquired by the employees.
Flipkart doesn’t want to lose its key talents
Flipkart certainly doesn’t want to suffer from the problem of poaching in the wake of increasing competition. As per reports, the Walmart owned company has already considerably suffered on this front after several of its high performing employees were poached by some well-funded startups. Most of these staff attrition has evidently taken place during the last one year.
Flipkart’s efforts for talent retention is also critical as competition in India’s e commerce sector is soon likely to heat up with the entry of Reliance Industries. India’s largest private sector company is expected to launch its maiden e-commerce venture later this year. According to reports, Mukesh Ambani owned company’s e-commerce venture will be extension of its offline venture Reliance retail, which sells groceries, food, apparel and other lifestyle products.
The anticipation of whether Reliance’s entry will have a disruptive effect on India’s e-commerce sector has already become a talking point. This discussion has certainly gained currency after Reliance Jio’s entry in 2016 had a game changing effect on India’s telecom sector.
Irrespective of the outcome, the two incumbent dominant players Flipkart and Amazon surely cannot be afford to become event scantly complacent.