We published a comprehensive wage study for Indian entrepreneurs last week. This research reveals some crucial findings concerning startup remuneration in India based on real wages of our users between 2016 and 2017.
Knowing market salaries is just as crucial for recruiters as it is for professionals. Why? Very simply, because:
Understanding your numbers will aid you in the following situations:
Avoiding unreasonably low compensation: Many businesses (particularly those that are bootstrapped) set their salaries too low for the type of people they wish to recruit. Remember, the more you depart from the market rate, the more "pull" your employer brand requires. Your hiring will suffer as a result.
Avoiding excessive pay: Paying too much might attract the wrong individuals while raising your burn rate, which can be fatal at an early stage.
Creating your ESOPs strategy. At an early stage, the wage reduction an employee takes is sometimes an essential factor in determining the ESOPs provided to him/her.
With that out of the way, let's go further into the main insights:
Employing technologists is costly. Particularly in Bengaluru and Hyderabad.
If you live in Bengaluru, you've probably noticed that techies are around 20% more costly than other professions.
And it's now official: Bangalore is the most costly city for hiring computer workers. That is around 35% more costly than even Delhi!
Hyderabad took us by surprise. It provided earnings that were greater than even Bangalore for those with less job experience!
As job experience grew, we saw that Bengaluru's premium over other cities rose, indicating that techies received higher pay raises over time.
Starting a business? Pune or Chennai may be better choices.
Unless you're seeking for specific profiles, Pune and Chennai may be more cost-effective places to establish a presence.
With the emergence of so many coworking spaces (for example, we work out of The Mesh), creating another office may not seem as scary as it once did.
Avoid a talent battle with well-funded firms.
Numerous CutShort recruiters showed a preference for individuals from well-known organisations such as Flipkart, Amazon, Snapdeal, and Google.
While this is fantastic, it also means that everyone is competing for the same skill pool. As a result, hiring becomes more complex and expensive.
This indicates that doing your own research is beneficial. Discover organisations that hire good people but aren't on other recruiters' radars. As in Zoho and Wingify from 3 years ago.
So, what should you pay?
That is determined by your desired position. Try out our live pay calculator we have launched if you want to understand typical salaries.
You might use this fast reference table to be competitive enough to target the top 15% of the talent pool:
Of course, these figures may be too high or too low for your specific scenario. Depending on your talent acquisition approach, you may opt to outperform the market or set lower pay.
The whole pay report may be seen here.
I hope you found this report informative. Please leave a remark if you'd like to see statistics on a certain issue.