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With clamor for talent rising high among start-ups, many are resorting to bonuses and ESoP to retain talent. Food technology firm Faasos recently announced bonuses to that covered around 300-350 employees and also ESoP to a select mid-managers.
The bonus and ESoP was applicable to employees who have completed two years at the company. The employees were handed bonus' equivalent to the number of years they had completed in the company. For instance, if someone has completed two years with the company they will be get salary for two months, those who have completed three years will get three months salary.
“We are a 3.5 year old company and have been growing rapidly and realized that in these years not many people have not left us for other opportunities and hence thought of rewarding them. The bonus covers employees across our fulfillment centres, supply chain.,” said Revant Bhate, co-founder, Faasos.
For the employee stock options however the company has been selective. “You need to be part of the mid-management and above level to get ESoPs. In that too people who have stayed with us for long is whom we wanted to reward,” said Bhate.
Bhate explains that at Faasos the leadership team is small it consists about 20 people, post the ESoPs almost 60 per cent of the team is covered. Bhate feels that being in business for just 3.5 years does not make the company too young to offer ESoPs.
“Every month we are growing over 30-40 per cent in our mobile app orders. For a start-up the initial years are of hyper growth. After 8-10 years the growth does taper down. The growth is also high because people are also putting in that king of effort. The sooner you give ESoPs the better,” he added.
Most of the start-ups have doled out ESoPs. eCommerce players such as Flipkart, Snapdeal and Housing have offered ESoPs to attract talent.”I will not shy away from saying that people have been raising money and have money to throw around and I need to retain the talent within our company,” said Bhate.
He is also of the opinion that those who generally agree to take ESoP also stay in the company longer. “There are people who have declined to take ESoP and asked for a higher salary, we generally do not hire such people,” he adds.
Retaining talent is high on every tech-led company. India’s largest IT services provider Tata Consultancy Services (TCS) recently doled out bonuses to employees. The amount of Rs 2,628 crore may be the highest paid so far by any Indian firm.
Faasos, earlier this year raised $20 million as part of its Series B fund raising from Lightbox Ventures. There has been news that the company may also raise another round of funds soon. “We recently raised $20 million so are comfortable for the next 12-18 months. I think the environment is such that people ask us why not raise more funds and grow 100 per cent than grow at 40-50 per cent now,” he added.
Mid-last year the company launched its mobile app, and by December had tracked 15,000 mobile orders. This month it will hit 65,000 orders on mobile. “In the next three-four months we will touch 300,000 orders via mobile app,” he added.
Faasos, delivers wraps and rice items in Mumbai, Pune, Ahmedabad, Bengaluru, Baroda, and Chennai. Faaso's has 120 delivery centres and will expand to 200 in 12 cities. At present it has presence in Mumbai, pune, Indore, Guragoan, Ahmedabad, Chennai & Banguluru. By next month they will enter Delhi and Hyderabad.
