Paytm Payments Scared CEOs of banks rushing to recruiters in search of work

Paytm Payments Scared CEOs of banks rushing to recruiters in search of work

In the last week, a few hundred resumes have been published to the recruitment marketplace MyRCloud.

Vijay Shekhar Sharma, the chief executive and creator of the firm, attempted to allay concerns among the roughly 35,000 workers during a virtual town hall on Saturday.

Hiring managers at One97 Communications and Paytm Payments Bank are inundating recruiters with resumes and job applications, perhaps due to concerns about potential regulatory issues for the digital payments startup. Employees in IT, merchant banking, sales, and marketing at all levels are ready to accept a wage decrease at a period like this when offers are few.

The deluge of resumes began after the Paytm Payments Bank was heavily fined by the banking authority last week for its failure to improve despite several warnings regarding fictitious compliance, anomalies in KYC regulations, and related-party transactions.

Vijay Shekhar Sharma, the company's founder and CEO, attempted to allay workers' concerns about the future of the roughly 35,000-person workforce on Saturday during a virtual town hall.

Due to Paytm's exit from the small-ticket lending sector, there has been a major staff reduction, and their biodata was sent to our marketplace. But in light of the RBI's Paytm comment, we're investigating other talent sources, including data. Viewing resumes from groups. STEM professionals, back-end developers, and other IT specialists are in high demand, according to Ramachandran A., CEO of myRCloud, an AI/ML-powered job marketplace.

In the last week, a few hundred resumes have been published to the portal, which has roughly 1,500 recruiters. According to Ramachandran, Mint, "Partners have received 300–400 CVs on our site, predominantly from junior to middle management."

At the town hall on Saturday, Sharma and top management assured the workforce that only performance-based layoffs would occur and that their jobs were secure. An official from the business said that during the one-hour town hall, Sharma stated that the company is in communication with the RBI and that any action taken by the regulator will negatively affect its yearly Ebitda by about Rs 300–500 crore.

Senior candidates seeking employment in the banking and financial industry may need to reconsider their stock offers when discussing remuneration with other companies, in addition to junior staff and middle management.

Certain well-known fintechs, especially those that provide payment solutions, use a mix of stock options and fixed and variable salary to entice top personnel. Some workers may find it simpler to choose new employment since these stock options may be worth millions of dollars. "It gets challenging," said Upasana Aggarwal, professional and financial services partner at executive search and personnel advice company ABC Consultants.

One partner at a different recruiting agency that employs One97 Communications' top executives said that since last year, middle and senior management had been contacting them. The partner said, "Candidates applied for employment after the business lay off staff a few months ago. Many Paytm workers who now get salary above market value may have to accept wage reductions."

The parent firm of Paytm, nevertheless, said that it anticipates further improvements in profitability. On Thursday, Sharma described the RBI limits as a "speed bump" to investors and analysts.

The business referenced a blog post by Sharma on