BANGALORE, September 3, 2015 /PRNewswire/ --
Median CTCs Offered by MNC R&D Centres at Tier 1 Campuses is INR 15.5 Lakhs
Zinnov, a leading management consulting firm, today released a study on 'Campus Compensation 2015', exclusively for the MNC R&D centres in India. The released study brought to light that the pecking order for recruitment at Tier 1 colleges is undergoing a dramatic shift, owing to the influx of start-ups. Start-ups are competing head-on with MNCs by offering very high packages, stock options and an opportunity to work on latest technologies for Tier 1 college graduates.
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Zinnov's campus compensation study indicates that the median CTCs offered by companies at Tier 1 campuses is INR 15.5 Lakhs. The CTC includes base salaries, variable pay, joining bonus and stocks. Companies are increasingly using stocks and joining bonus as mechanisms to attract top talent and gain a Day Zero slot in Tier 1 colleges for recruitment. The value of stocks and joining bonus combined may vary between INR 4 to 10 lakhs from company to company.
Talking about the study, Anand Subramaniam, Program Manager (G.A.P), Zinnov said, "Companies use the strategy of onetime payments like joining bonuses and stocks in order to manage internal parity on the base pay in their organizations."
"High salary packages are being given to graduates from Computer Science and related streams by Software/Internet R&D companies and startups. However, interestingly, companies in the Mechanical and Electrical R&D space are able to source talent from the same institutes at a much lower price," he added.
The average salaries paid to Mechanical and Electrical engineers at Tier 1 colleges are about INR 7 Lakhs. Also, the practice of giving joining bonus and stocks is not very prevalent in the Mechanical sector.
Retaining talent hired from Tier 1 colleges continues to be a challenge for employers with freshers tending to leave for higher studies after a year or two. While many companies leverage the potential of the hires within these two years to justify the Return-on-Investment (ROI), some companies are opting to hire from Tier 2 established colleges like NITs and IIITs or hire M-Techs from IITs.
Increasingly, MNCs and other companies believe that they are able to find equally good talent at Tier 2 established institutes and Tier 2 emerging colleges like PESIT, M.S Ramaiah at a much lower cost. That said, companies employ stringent screening processes for these colleges to short-list and identify the right fit for the organization. MNC R&D centres on an average pay about INR 8 to 9 Lakhs to graduates from Tier 2 established campuses and about INR 6 to 7 Lakhs to Computer Science graduates from Tier 2 emerging colleges.
The battle between start-ups and large MNCs for attracting and hiring the best talent has just begun, and is only expected to increase further in the near future. MNC R&D centres in India need to adopt innovative mechanisms in addition to compensation to gain a competitive edge in this talent war.
About Zinnov:
Zinnov provides consulting services for the establishment and management of offshore captive centers for Engineering & IT, BPO, and knowledge process-based services. Zinnov offers offshore advisory services; and assistance with conducting market analysis, exploratory research for expansion and business analytics. Zinnov also provides business consulting and support services, which include customized consulting engagements, operational dashboards, industry trends and best practices monitoring, and policies in the areas of technology & IT services, business and corporate services, growth strategies, expansion initiatives, branding, and process improvements.
Zinnov serves clients in software, automotive, telecom & networking, semiconductor, consumer electronics, storage, healthcare, banking, financial services & retail verticals in US, Europe, Japan & India. Zinnov was founded in 2002 and is head quartered out of Bangalore. The company has locations in Houston, Silicon Valley, Bangalore & Gurgaon.
For more information, visit www.zinnov.com .
Media Contact:
Kinjal Chhetri Panwar
[email protected]
+91-8197140140
Zinnov Management Consulting
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