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Byju’s sales staff salaries now linked to weekly revenues, say sources
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Byju’s told staffers that half of the upfront weekly collection will be disbursed to sales associates every week. The edtech major has suspended the base salaries for sales team associates for this period, sources said.
The salaries of Byju’s sales staff in two teams have been linked to weekly revenues they generate for nearly a month, people familiar with the development told CNBC-TV18 on May 2.
The new policy on pay effective from April 24 to May 21, as of now, is applicable to Inside Sales and Byju’s Exam Prep teams, they said.
“This policy applies to all associates and their hierarchy of the inside sales & BEP team involved in revenue generation activities… This policy underscores our commitment to maximizing the earning potential of every member of our sales force,” the firm said in an internal email, accessed by CNBC-TV18.
Byju’s told staffers that half of the upfront weekly collection will be disbursed to sales associates every week. The edtech major has suspended the base salaries for sales team associates for this period, the sources added.
“In light of the organization’s current financial challenges, base salaries for sales team associates will be suspended temporarily for the 4 weeks period,” as per the internal email.
Explaining the new payout system, BYJU’S said, for instance, if an associate collects ₹50,000 in revenue generated from orders between April 24 and April 30, they will receive ₹25,000 on May 1. If the orders get cancelled, the it the amount will be deducted from the next payout.
The sales cycle at BYJU’S gets closed for the previous week on every Tuesday, so employees can expect payouts to be released by the next day of week closing, the company said. For people at manager levels and above, they are expected to maintain a team size across this period of four weeks at the mentioned minimum levels, failing which might lead to reduced potential payout.
By passing on the ownership of the business to the last level on the ground, the firm claims it is creating a transparent, ethical, and rewarding system.
The edtech asserted that the initiative shall ensure that its sales team experiences timely payouts even during periods of operational adjustments and system optimisations. “The amount disbursed will be adjusted against any pending salaries owed to the employee. This feature ensures that our sales associates receive their rightful earnings promptly, thereby enhancing financial security and stability,” the email read.
The development comes at a time when the beleaguered edtech startup has been witnessing financial strains over the last two years and for at least months delayed the disbursement of employees’ salaries.
Earlier in April, Byju’s said it had decided to borrow money to pay the salaries pending to its employees. “Unfortunately, despite our efforts, we haven’t yet secured approval to access the rights issue funds, because of the action of four foreign investors. However, we have arranged an alternative line of credit to ensure timely payments,” the management said in an email sent to employees on April 8.
Meanwhile, big investors including Prosus, General Atlantic, Sofina and Peak XV, supported by Tiger Global and Owl Ventures, have moved the National Company Law Tribunal (NCLT) alleging financial mismanagement by the founders of Byju’s and willful default in sharing information with stakeholders.
In March-April, the edtech company also laid off 500 employees as part of a business restructuring exercise announced in October 2023. The layoffs primarily impacted sales function teams, sources had told CNBC-TV18, adding the firm estimates another 1,000 to 1,500 job cuts in a worst-case scenario but is hopeful it may not have to resort to these.
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