The Dark Side of Stayzillas: Unveiling Unethical Practices and Leadership Tactics
As an ex-employee, the recent news of the arrest and harassment of Stayzillas' founders is not surprising. Under the guise of being an all-holy righteous bunch, the leadership has been known to employ tactics both to avoid cheating vendors and, importantly, their own employees. This article will delve into the unethical practices and leadership tactics that have enriched the company while depleting the trust and loyalty of its employees.
Leveraging Lack of Paperwork for Bonus Discrepancies
The leadership at Stayzillas has been notorious for using informal and unethical methods to manage employee bonuses and stock options. A prime example is the situation surrounding the issue of bonus payouts. Yogi, the co-founder, made a conscious effort to be seen as approachable and righteous, hence new hires were often brought on board without a thorough understanding of the company's official policies. While the initial offer letters provided vague details about the potential for a bonus and ESOPs, specific information was missing.
The Case of the Unfulfilled Promises
When the time for bonus disbursement arrived, the management cited poor company performance as a reason to only disburse a portion of the promised bonus to top performers. Since there was no official documentation, employees could not contest this decision. In another instance, an employee, frustrated with the delay in promised raises, had even received a better offer from another company. However, when Stayzillas offered a raise to retain this talent, they reneged on their promise, further eroding trust.
Bogus ESOP Policies and Broken Promises
Employee Stock Options (ESOPs) were another area where the leadership showed its true colors. For fresh graduates, the compensation included 6 lakhs in ESOPs, which were promised to be made available once the paperwork was signed. However, this process was drawn out for over half a year, with excuses like "investors are busy" and "we are moving offices." Eventually, the scam was exposed, and revelations showed that the company had no ESOP policy in place. The CFO, Yogi, attempted to justify the delay by claiming it was due to changes in the Companies Act, albeit poorly executed.
Unkept Promises and Broken Trust
Another significant source of frustration was the deployment of unkept promises. Employees who saw the promise of substantial raises to keep them on board often found these promises crumbling, thereby leading to high attrition rates, especially post-Series C. This behavior left a sour taste in the mouths of many employees, leading to a general lack of faith in the company's integrity.
Falsifying Statistics and Core Metrics
The presentation of false statistics and core metrics further compromised the company's credibility. During recruitment drives, Stayzillas boasted of outperforming major competitors like Makemytrip and Yatra in daily bookings. It was only when employees started working that they realized the figures were fabricated. These misrepresentations were also present in investor pitches, with examples of doctored screenshots being shown in meetings with investors. Consequently, despite impressive metrics and a strong team, the company struggled to attract further investments.
Loss of Institutional Trust
The truth about these practices began to unravel, leading to a significant loss of trust among employees and, notably, institutional investors. It has become clear that the founders have lost the confidence of their employees, as evidenced by high attrition rates, and the loyalty of investors, as seen by their reluctance to invest further. It is evident that these actions have not only harmed the company but also shattered the foundation of trust and reputation upon which a successful business should be built.
As we reflect on the actions and leadership style of Stayzillas, it is clear that the principles of transparency, honesty, and fair treatment of employees are non-negotiable. The case of Stayzillas serves as a cautionary tale about the long-term consequences of unethical practices and the importance of maintaining trust in the workplace.
Conclusion
The recent arrest and harassment of Stayzillas' founders mark a turning point in the company's history, highlighting the need for transparency and ethical conduct. It is imperative for companies to foster environments where trust is not just a buzzword but a fundamental aspect of their operations. As the industry continues to evolve, ethical practices will be the hallmark of successful and sustainable businesses.