“Flush Indian Startups Face Shortage of Skilled Workers”
November 8, 2015
Indian start-up companies are competing for more than market share. The real battle is for talented Indian programmers and startups are pulling out all the stops. Since 2010, the number of Indian based startups has almost quadrupled as the venture capitalist money has poured in. Many of these startups are tech based companies and require highly skilled coders to help support their e-commerce sites. However, it has been difficult to retain personnel with the advanced programming skills needed. So companies are paying up. For example, in 2012 salaries for entry level programmers was around $25,000. Now someone with the same skill set can earn upwards of $45,000. More seasoned programmers went from making roughly $100,000 in 2012 to now over $200,000. Indian based startups are also looking outside of their country for top tier talent; especially at the executive level. Yahoo, Motorola Mobility, and Google have all lost people to the Indian startup craze.
One other interesting aspect of this article was how companies are getting more creative with compensation. Companies are offering fringe benefits. Start-ups flush with money from foreign investors are offering incentives such as free rides to work, free lunch, quality laptops and smart phones, and gym memberships.
I think this article is a good example of what companies often have to do when looking to staff themselves with the right people. Often times they can look for local nationals but if the talent pool is limited they may need to go outside of their country. Also, this article shows that to attract the right people it can take more than a competitive salary.