Innovative packages: Salary fattens at IITs & perks make it a perfect figure

MUMBAI/KOLKATA: It's not just about fat salary packages at the Indian Institutes of Technology this placement season. The perks are getting bigger and in some cases more innovative. Google, which is paying a salary of around $115,000, is offering 125 shares each to its hires; Hyundai Motor is offering the chance to acquire an MBA; startup Axtria India, which has hired 18 students from IIT-Roorkee, will pay them 25 lakh distributed over a period of three years. Myntra, besides offering 13 lakh in salary, is offering stock options as well, as are other recruiters.

"These kind of offers tend to be incumbent and role-dependent and are likely to appeal much more to candidates at the entry level rather than mid or senior levels," said Anandorup Ghose, director at Aon Hewitt. Ghose added that perks make more sense in evolving or new roles.

Aon Hewitt's Ghose added that perks make more sense in evolving or new roles or in organisations that do not want to shell out too much money upfront. "That apart, in organisations such as Google or Apple, offering shares can be a drawing factor because of the huge brand value associated with these companies," said the compensation expert.

Google declined comment. "We do not comment on compensation, with regard to offers or otherwise," a company spokesperson said in response to an email query.

Hyundai has offered prospects at IIT-Madras the chance for a global MBA from a management school in South Korea and then the position of an associate. One student has bagged the offer. The company will bear the cost of fee and housing, healthcare and visiting the home country plus provide a monthly stipend of $2,000 at the time of study.


After completing the MBA, the candidate will be placed at the Hyundai Motor Company headquarters in South Korea for two years and be entitled to an annual salary of 25 lakh. At the end of the two years, the person will take up a leading managerial role in the company in South Korea or at any of its global ventures.

IIT-Roorkee's placement team confirmed that Axtria India had hired 18 students at a total cost to company of 25 lakh spread over three years and divided in parts. Students will get 6 lakh at the end of first year, 8 lakh at the end of the second year and 11 lakh at the end of the third year, an increment of about 30%.

"Most of our seniors who joined last year are still there and my increment for next three years is confirmed. I do not have to be part of a company that will give me a mere 5% raise because of choppy markets," said a 22-year-old student who was selected. He will complete his integrated masters in applied mathematics in 2014 and did not wish to be named. ET could not independently verify this with the company.

For some companies, hiring the right person is not just a question of throwing money at students.

Harishankaran K, co-founder and CEO of Interviewstreet.com, a Bangalore startup, has so far visited IITs at Kanpur, Bombay, Kharagpur and Roorkee and plans to visit the new IITs as well. It's looking for software developers, technical writers and candidates to fill positions in sales and marketing.

According to Harishankaran, the company offers better-than-market salaries, but only after three-six months after joining. Pay is pegged below market rates at first to make sure that people join because they are driven and want to learn. The company is paying between 9 lakh and 15 lakh depending on how good the candidate is. Pay is hiked 10-25% two-three months after joining, based on goals achieved, whether the person fits in well, long-term prospects, etc.

Groupon will pay a salary of 12 lakh for business analysts along with a joining bonus of 75,000 and shares worth 75,000 when they come on board in June, according to an IIT recruit. "You feel more concerned about the company and more involved in its workings," said the person who didn't want to be named.

Ankur Warikoo, CEO of Groupon India, said in an email response to ET that "Groupon values highly the technology talent that helps make Groupon great and we pay competitive salaries. India is a key development centre".