Many Indian start-ups are doling out handsome pay packets, with junior level employees getting not less than Rs 5 lakh a year besides providing flexible work timings as they look to attract talent, says a study.
Many Indian start-ups are doling out handsome pay packets, with junior level employees getting not less than Rs 5 lakh a year besides providing flexible work timings as they look to attract talent, says a study.
It also said 'interesting work' and 'opportunity to grow' are also prevalent among start-ups that help bring in talent.
The findings are a part of a joint study conducted by global management consultancy Hay Group and global venture capital firm Canaan Partners across four technology-related sectors.
As many as 82 per cent of the start-ups surveyed pay more than the market median, the study said.
While junior level people get paid Rs 5.50 lakh per annum, those at the mid-level and senior-level get paid Rs 15 lakh and Rs 35 lakh a year, respectively, which is at par or above the more traditional and mature organisations.
"The pay philosophy when coupled with a value proposition that is attractive to the younger workforce could become a huge challenge for traditional organisations to deal with," Hay Group India, Director, Debabrat Mishra said.
As per the study, the start-ups use a mix of fixed annual compensation, benefits, and incentives (short-term and long-term) to reward their employees. While the mix varies across management levels, health and life insurance benefits are provided to all.
Stock options to top management levels are the most popular form of long-term incentives, given by 83 per cent of the start-ups, the study said.
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