According to the official statement of the Company, this initiative to disburse the salaries on a weekly basis rather than monthly was taken considering the benefits to the employees, the preferences, and the changing dynamics of the global economy.

It explains that paying employees on a weekly basis makes it easier for them to meet real-time fiscal obligations and motivates employees with their purpose in the organisation.

It follows the decision, opted several years ago, to pay out employee bonuses on a weekly rather than monthly basis. It has become a trend within Indian start-ups, to attract and retain young talent in the Company.

According to the Company, when employees are happy and invested in their work environment, they’re less likely to work elsewhere, so the measure helps employers to improve workers retention, lower hiring costs, and create a sense of consistency and stability within the company.

Industries with cash flow that revolves more on a weekly rather than monthly basis also benefit from weekly pay periods. It is a cash flow win for both the employer and employees.

Weekly pay-outs are already common in developed economies like New Zealand, Australia, Hong Kong and the U.S.

However, most companies do not offer weekly pay periods even if their employees would benefit from it. The main reason is probably the cost, as most payroll vendors charge each time payroll is run.

Dinesh Gulati, COO of IndiaMart, said: “Amidst the rapidly evolving Flexi work culture, instant gratification is what every employee expects. We believe weekly pay-outs will be appreciated by one and all across the organization. We had started taking steps in this direction many years back when we migrated to weekly incentive pay-outs for many roles across the organizations.”

This is the last step IndiaMart adopted to improve employees satisfaction: it was one of the first organisations to implement work from home during the pandemic, also introducing programs enabling employees to work efficiently from their and providing discounted rates on online courses.