IIT Coaching Institute Holds Back Staff Salaries, Calls It Motivation To Work Harder: Report

FIITJEE, one of India’s oldest test preparation institutes, has withheld employee salaries for the second consecutive month amid stagnant growth and intensified competition across its coaching centres nationwide.

What Happened: FIITJEE disbursed 50% of January salaries last week, deferring the remainder, Moneycontrol reported, citing sources. This action follows reports in February indicating salary suspensions due to cash flow constraints.

This comes as India’s test prep domain, witnessing the emergence of contemporary edtech startups like Physics Wallah and Unacademy, alongside established Indian brands such as Allen and Aakash vying for market traction.

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In correspondence, FIITJEE’s management justified the salary suspension as a motivational measure, urging employees to heighten their commitment and performance. Founder and Managing Director, Dinesh Kumar Goel, reportedly emphasised this sentiment in a March 3 email, underscoring the need for concerted efforts and clear objectives.

Established in 1992 by Goel, an alumnus of IIT Delhi, FIITJEE delivers test prep courses for IIT-JEE and other competitive exams, operating over 100 centres nationwide with a workforce exceeding 4,000.

Despite historical successes, the organization faces scrutiny amid recent losses and operational challenges.

FIITJEE’s current predicament reflects broader challenges within the edtech sector, compounded by market shifts, investor scepticism, and internal operational realignments.

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