Paytm is known for paying salaries above the industry average and there are not many firms that can match such lavish pay packages, industry insiders and executives at recruitment services and search firms told ET.
“Most Paytm employees draw anywhere between 20-30% higher salaries than industry standards. Many startups are wary of hiring them due to this reason,” said an industry insider privy to discussions at more than one startup. Similar was the case with financially-beleaguered edtech firm Byju’s, once India’s most valuable startup.
Consequently, many at Paytm are willing to switch jobs, even for lower pay, as the Noida-based company faces regulatory pressures on its operations.
“Leadership talent at Paytm is ready to take a pay cut as listed companies’ stocks are liquid and a lot of start-ups won’t be able to match overall cash including RSUs,” said Ashish Sanganeria, senior partner, Transearch, an executive search firm.
Currently, most consumer internet startups are hiring employees offering similar or only marginal pay hikes due to the large available talent pool, said industry experts. This contrasts with the 2021-22 period of great resignations during the pandemic when salaries at these firms reached an all-time high.”Paytm offers significantly higher base pay and equity… this strategy aims to create a competitive edge by making it harder for rivals to replicate their talent base,” said an executive at a recruitment services firm, asking not to be named.This trend of offering generous compensation packages isn’t novel and nor is it exclusive to startups, according to recruitment services experts.
“We have seen market-leading organisations with the top-notch talent, end up paying a premium of 15-20% to retain and engage this talent,” said Pranshu Upadhyay – regional director, Michael Page India. He said market leaders across industries are known to pay top salaries.
During the pandemic, there was a sharp spike in demand for highly-skilled tech talent, particularly among the startups and tech companies, leading to a surge in salaries. “As a result, the salaries of many employees in companies like Paytm got benchmarked at a level that the market hadn’t witnessed before,” said Aditya Mishra, chief executive, CIEL HR Services. “Given the current context, many employees from companies like this find it hard to pick up a job for their next move. Often, the salaries available in the market are lower by 30-50% compared to what they’re getting now,” said Mishra.
