Startups ready to pay multi-crore salaries to retain talent
Bengaluru, India | Red Newswire | Jan 23, 2016 Last Updated at 5:00 PM IST.
The necessity to pursue and retain top talent is pushing startups to pay multi-crore salaries, plus stocks portion.
Headhunters including Transearch India, Hunt Partners, Korn Ferry and EMA Partners are looking for the right matches for 20 mandates to lead startups, ecommerce industry etc.
Sunit Mehra, founder of Hunt Partners said, “Salaries for top talent at startups have doubled and in some cases even trebled in the last 18 months. Most of these salaries that have gone up from Rs 70 lakh to Rs 1.5 crore to Rs 2-4 crore were pushed up by the cash component alone.”
Recently, InMobi hired a director-level executive from an American MNC, Snapdeal hired head of technology of a California company, Paytm got an Amazon India Executive onboard and so on.
BlueStone, a jewelry retailer has started offering multi-crore salaries to retain talent. Founder Gaurav Singh Kushwaha says, "Till about a year or so, we were not paying a multi-crore salary to anyone in the company. But now, we are paying multiple people salaries of this amount. This is in addition to the ESOPs. It's for the key positions at leadership levels. We are ready to pay whatever it takes to acquire talent."
Bluestones has big investors like Ratan Tata, Accel Partners, Kalaari Capital and IVY Capital. However, there major problem is not money but getting right talent.
Companies also use ESOPs (employee stock option plans) for attracting as well as retaining talent.
A Ramachandran, client partner at EMA Partners said, “Till last year, salaries at leadership positions in startups were around Rs 1-2 crore but now it has doubled, mainly led by jumps in the stock options.”
Madhav Sharan, MD at Korn Ferry said, "We are seeing a trend where startups are packing in more variables to match up with the salaries and stocks paid in previous companies. As an individual or two can make or break the company, the startups are not shying away from offering the best.”
Source: ET Bureau