In fierce competition to attract talent, startups have come up with many innovative ideas. Tata Digital is reportedly the latest to join the bandwagon. The company may offer an employee stock ownership plan (ESOPS) to all its employees, The Economic Times has reported.
Tata Digital has been interviewing candidates from the startup world for different roles and many are believed to have sought ESOP as part of compensation packages, the news report quoting unnamed people said.
Tata Digital which had acquired Big Basket had earlier offered management stock options to the founders of the online grocery retailer. The newspaper said the company may now extend it to all employees.
The startup world is staring at a huge talent deficit even as investors are ever willing to bet big on them. Recently, the social commerce platform Meesho, in order to retain talent, has announced a 10-day break so that its workers can unplug and rejuvenate. Another startup Bharatpe has even offered BMW bikes, gadgets and cricket holidays in Dubai to its employees.
Tata Digital is in direct competition with startups.
The Economic Times quoted G C Jayaprakash, founder-director of boutique executive search firm Accrete Executive Search, as saying that, unlike established players who are into institution building, it is all about building unicorns and encashing stock options within a short period.
He said Tata Digital will have to offer compensation structures in line with pay packets offered by startup companies.
“Tata Digital as a new company will also have to offer such compensation to attract startup talent.”
Reports of ESOP are appearing amid Tata Digital’s plan to launch the super app TataNeu.
Meanwhile, food delivery app Swiggy said it will give employees the opportunity to tender ESPOS twice over the next two years. The plan is estimated to be worth $35-40 million at the company’s current valuation.
As Swiggy grows, we want our team to grow with us and enjoy the fruits of their hard work and valuable contributions. This is an industry-first initiative whereby we are democratising wealth creation by enabling all our ESOP holding employees to participate in our committed liquidity events in 2022 and 2023,” Girish Menon, Head of HR, Swiggy, said in a statement.
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