After its integration with the Axis Bank, FreeCharge provided a six month retention bonus to its employees.
Why the bonus strategy
The bonus has been provided to ensure that employees don’t quit the firm while Axis Bank takes over FreeCharge. These bonuses were provided based on the employee’s seniority level.
What the employees have to say on the recent development
The reason is linked to employees stock ownership plan (ESOP). A person associated with the development added “These ESOPs are of little or no value at all. So, getting a retention bonus for a six-month period is a sound option to go for”.
“There is a formula based on which the payouts are being finalised. Employee performance along with seniority and the duration of association with the company are key metrics,” said another person.