Slow festive sales may hit bonuses

BENGALURU/NEW DELHI: Muted festive season sales at consumer, electronics and e-commerce firms may erode yearly bonuses by about 15%.

- Sowmya Ramasubramanian & Shouvik Das

"The bonus rolled out to the sales/operations teams for Diwali may not get impacted given the nature or structure of these awards, but the annual bonuses will take into account the muted sales in many sectors," said Anandorup Ghose, partner at consulting firm Deloitte India and an adviser on rewards and compensation structure. "The overall consumer sector has had a toned-down Q2 and the bonuses that come in at the end of the year may be lower than the past few years."

Bonuses are paid at various stages to employees. One tranche, part of the salary structure, may come during the festive season, followed by the rest at the end of the fiscal.