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Covid-19: Paytm decides to fire 500-700 employees after performance review

Paytm (owned by One97 Communications Ltd.) on Friday said that it will offer ₹250 crore in employee stock option plans (ESOPs) this year to its high performing employees and new hires.

Paytm said this will widen the base of employees having company shares and will enable more people to become a stakeholder in Paytm’s growth story.

Paytm also said that it is looking to let go of some employees who have underperformed in the last financial year.

Owing to the current crisis, Paytm said that it will retain these employees on their payroll for another two months and ensure that they receive all payments for this extended period.

“Every year after taking into account the performance of each employee, we usually find that 5% to10% of our employee base are at the lower end of the bell curve. In such cases we ask the employees to look for opportunities outside Paytm.

This year we have found 500-700 employees have underperformed by our performance metrics and we will be retaining them for 2 months until they find better opportunities considering current times,” Paytm said responding to a query.

Paytm CEO and founder Vijay Shekhar Sharma, earlier this week told Mint that the company plans to aggressively focus on its financial services strategy.

The company plans to hire over 500 people for multiple roles under its financial services categories, besides hiring in product and technology.

“Paytm has a high-performance culture and follows a transparent process to evaluate and reward employees. We always ensure to provide ample growth opportunities and engage for feedback from time to time,” said Rohit Thakur, Chief Human Resources Officer, Paytm.

The company said that it started its company-wide process of annual performance reviews in January 2020, to evaluate the performance of 100% of its workforce.

Paytm isn’t the only fintech player in the market which has claimed that it is providing appraisals to its employees.

Bengaluru-based Razorpay said that it will be giving appraisals to its employees, and Delhi-based BharatPe which reportedly gave an average 20% hike to its employees.

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