According to him, most Paytm employee They get salaries 20-30% more than the industry standards. According to an ET report, this generous compensation has made many startups hesitant about hiring Paytm employees.
The same situation was seen with financially troubled edtech firm Byju's, which was once India's most valuable startup.
As a result, many Paytm employees are willing to change jobs, even if it means accepting lower salaries. This is because the Noida-based company is currently facing regulatory pressure on its operations.
Paytm employees facing problem due to high salary!
According to Ashish Sanganeria, senior partner at leading executive search firm Transarch, Paytm's leadership talent is willing to take a pay cut as stocks of listed companies are liquid, and many startups cannot match the overall cash flow including restricted stock units (RSUs). . , offered by Paytm.
Industry experts have noted that most consumer Internet startups are currently hiring employees with the same or only modest salary increases due to the abundance of talent available. This is a significant contrast to the pandemic period in 2021-22, when salaries at these companies reached record highs due to a surge in resignations.
An executive at a recruitment services firm, requesting anonymity, said Paytm's strategy of offering higher base salaries and equity is aimed at creating a competitive advantage by making it difficult for rivals to replicate its talent pool.
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This trend of offering generous compensation packages is not exclusive to startups and has also been seen in market-leading organizations across various industries. According to Pranshu Upadhyay, regional director, Michael Page India, market leaders often pay a premium of 15-20% to retain and engage top-level talent.
During the pandemic, there was a high demand for highly skilled tech talent, especially in startups and tech companies, which led to a significant increase in salaries. As a result, the salaries of many employees of companies like Paytm got benchmarked to unprecedented levels. However, in the current job market, employees of such companies find it challenging to secure new jobs as the salaries available are often 30-50% less than their current earnings.