Shillong, August 10: A recent report revealed that employees in Indian startups experienced an average salary increase ranging from 8 to 12 percent during the period of 2022-2023. The variation in these increments was influenced by factors such as individual and company performance, talent quality and level, and geographical location.
As per IANS, Elevation Capital, a venture capital firm, highlighted that employee performance continued to carry a 50 percent weightage in determining salary increments. Additional responsibilities and promotions contributed around 20 percent to the equation. The evolving market conditions prompted salary corrections, particularly at leadership levels. Interestingly, job seekers showed a willingness to wait for the right opportunity rather than settling for suboptimal pay.
In response to the shifting landscape, some companies deferred salary raises, substituting them with new stock grants for leadership roles. Particularly for CXOs and function heads, exploring stock-based increments was deemed suitable, with plans to reassess the cash component in subsequent quarters.
Bengaluru and Hyderabad emerged as key cities for tech talent availability, jointly representing 72 percent. However, concerns such as attrition rates, hiring costs, and skill levels were acknowledged as vital considerations for startups. The report highlighted essential roles like Chief of Staff/Founders’ Office, Growth, and Finance among the first few hires at early-stage companies.
Facing macro-level challenges, Indian startups demonstrated adaptability by offering inflation-driven salary increases to attract and retain talent. Nevertheless, the report emphasized significant variations, with technology professionals in small to mid-size startups observing moderate increments. The demand for tech talent remained high, particularly for those with prior functional expertise, experience in solving intricate problems, and a background spanning both startups and multinational corporations.
