TMCnet News
PhD Students Hired From Campuses Receive 26% Higher Salaries Than Bachelors in Engineering Graduates: Says ZinnovBANGALORE, April 24, 2017 /PRNewswire/ -- Bangalore has the largest undergraduate talent base whereas Chennai tops the list for postgraduate talent Cost to Company (CTC) in Tier 1 institutes is 2 times more than that in Tier 2, emerging and Tier 3 institutes owing to sizeable Joining and Retention bonuses Leading management consulting firm, Zinnov, today released its annual benchmarking study titled the 'India Global In-house Center (GIC) Campus Compensation Study 2017'. Zinnov's campus compensation report is leveraged by R&D GICs to design compensation and benefits packages for B.E./B.Tech, MBA and Non-Engineering campus hires and Interns across various tiers of Indian institutes. In 2016, 35 GICs participated from Software, Semiconductor and Engineering Services Industries. Compensation offered is measured per recruit across four key salary anchors - Total Guaranteed Cash (TGC), Total Cash Compensation (TC), Total Rewards (TR) and Cost to Company (CTC). (Logo: http://photos.prnewswire.com/prnh/20130213/594614 ) India continues to produce a significant number of fresh engineers (80000) who are available to work in R&D GICs, a 33% increase in the last two years. The Government's initiatives to increase the number of IITs across the country to uplift the quality of higher education in India and collaboration between academia and GICs is increasing the pipeline of suitable talent for R&D. Across selected engineering streams, Bangalore has the largest undergraduate talent base whereas for postgraduate talent, Chennai tops the list amongst all locations. The ongoing war for talent has pushed companies to increase their emphasis on campu recruitment owing to efficiencies in terms of scale, cost and time to hire. Organizations are looking at campus hiring as a way to establish a vibrant and cohesive work environment and as a lever to establish diversity across age, geography, experience and gender. The study indicates that GICs still perceive that the quality of talent in Tier 1 colleges are of high calibre and pay a premium to on-board them with 2 times higher compensation than those from other institutes. The Average Total Guaranteed Cash paid to B.Tech graduates from Tier 1 institutes is about 10 Lakhs, 50% more than that in Tier 2 institutes. Speaking about the findings of the study, Anand Subramaniam, Engagement Manager and Delivery Head (G.A.P), Zinnov, said, "The permeance of software and fungibility of skills across industry verticals is forcing GICs to increase their emphasis on campus compensation and engagement to gain a competitive advantage in attracting fresh talent." 70% of the organizations have detailed salary components such as Guaranteed Cash, Variable Pay, Retirals, Monetized Benefits and Stocks for campus hiring. However, only 20% of the study participants offered Stocks to the campus recruits. On an average, GICs offer 1.5 lakhs as joining bonus which is disbursed to students after completion of 12 or 18 months. For outstation students, it is a common practice to provide accommodation in a serviced apartment for an average of 16 days. Most GICs allow new hires to claim relocation allowance based on the actual amount spent or fix a cap on the maximum amount and provide it in the 1st month's salary. Anand Subramaniam, Engagement Manager and Delivery Head (G.A.P), Zinnov, said, "Product Management and Product Development roles command higher salaries in campuses compared to Quality roles. In addition, GICs tend to hire for Quality and Support roles more from Tier 2 and 3 institutes across the country." The study also highlighted that converting interns to FTEs is one of the preferred mechanisms of recruiting fresh hires at R&D GICs. Internships enable companies to showcase the quality of work to candidates and increase brand penetration in campuses. 70% of the GICs offer internships for a period of 3 to 6 months and provide an average stipend of INR 25,000 per month to Engineering students. About Zinnov Founded in 2002, Zinnov is headquartered out of Bangalore with presence in Houston, Silicon Valley, and Gurgaon. In over a decade, Zinnov has built in-depth expertise in engineering and digital practice areas. We assist our clients in globalizing their operations and maximizing their footprint by: - Effectively leveraging global resources for engineering, IT, digital and business ops for higher throughput - innovation, productivity and cost savings - Enabling companies to focus on new product development and core business processes by finding the best partners - Growing revenue for their products and services in India and other emerging markets With our team of experienced professionals, we serve clients in Software, Automotive, Telecom & Networking, Semiconductor, Consumer Electronics, Storage, Healthcare, Banking, Financial Services and Retail verticals in US, Europe, Japan and India.
|