Troubled edtech major Byju’s has rolled out a new policy wherein the salaries of the sales staff are directly linked to the revenues they generate every week, amid the struggles that the edtech major is facing with a severe cash crunch and to cover the payroll of its employees.
The cash-crunched company has only paid a part of salaries for February and March, after weeks of delay.
BYJU’S will now directly pay a percentage of the weekly revenue generated by sales staff at the end of the seven-day period.
The company said the new policy applies to the Inside Sales (IS) and Byju’s Exam Prep (BEP) teams, which largely focus on generating revenue for Byju’s. The policy, which was introduced within the company on April 24, will be applicable for four weeks till May 21.
Also read: Troubles mount for Byju’s as OPPO files insolvency plea, NCLT admits case
“Starting immediately, 50 per cent of the upfront weekly collection will be directly disbursed to our sales associates every week for the next four weeks. For instance, if an associate successfully collects ₹50,000 in revenue generated from orders between April 24th and April 30th, they will receive ₹25,000,” according to an internal document which businessline viewed.
Salary suspension
The firm said that the base salaries for sales team associates will be ‘suspended temporarily’ during this period. “Since the base salary has been suspended, you will not receive any payout or salaries for the given period (when the associate fails to do any revenue in a given week),” it added.
The document also showed that the amount disbursed will be adjusted against any pending salaries owed to the employee.
This has been done to motivate sales staff to bring in new enrollments, said sources close to the development.
Recently, the company paid partial salaries to employees for March, reported businessline. Byju Raveendran, founder and CEO, Think and Learn, parent, BYJU’S, has raised debt in his personal capacity to pay the salaries of employees for March.
For March salary, the company had started making salary payments in the range of 100 to 50 per cent to all employees. Teachers and lower salary grade staff were been paid in full while the rest, including senior management, have received at least 50 per cent of their dues for March, reported businessline.