Pay Gap between Startups and Big Known Old Firms in India

When it comes to finding a job, most people aim to work for big known old firms as they offer job security, a well-established work culture, and a brand name that adds value to your resume. However, in recent years, the Indian startup ecosystem has grown significantly, and startups are not only offering innovative work opportunities but also are willing to pay their employees much higher salaries than the big known old firms.

According to a recent report, the average salary of a startup employee in India is around Rs. 11 lakhs per annum, while the average salary of an employee in a big known old firm is around Rs. 9 lakhs per annum. This difference in pay is not only limited to the entry-level jobs but also applies to mid-level and senior-level roles as well.

So, why are startups paying higher salaries?

Startups in India are still in their early stages and face tough competition in attracting top talent. They need to offer their employees something that big known old firms cannot, such as a dynamic work environment, opportunities to work on new and innovative projects, and a higher degree of autonomy. But above all, startups are offering higher salaries to attract the best talent in the market.

Moreover, startups understand that their employees are their biggest assets, and investing in them is crucial for their growth and success. They offer higher salaries to not only attract talent but also to retain them. Unlike big known old firms, startups have a limited budget and cannot offer huge bonuses, stock options, or other perks. So, they compensate for it by offering higher salaries to their employees.

It's not just the technical roles that are seeing higher salaries in startups; even non-technical roles such as marketing, sales, and business development are also seeing a significant pay difference compared to big known old firms.

In conclusion, the pay gap between startups and big known old firms in India is a reality, and it's growing. If you're looking for a job, it's essential to consider all options, including startups, as they not only offer higher salaries but also provide a more dynamic work environment and opportunities to work on new and innovative projects.

However, it's crucial to note that working for a startup comes with its own set of challenges, such as job security, work culture, and uncertainty. So, it's essential to do your research and make an informed decision before taking up a job offer from a startup.

In summary, while big known old firms offer job security and a well-established work culture, startups in India are now offering higher salaries and more dynamic work environments. As the startup ecosystem in India continues to grow, it's worth considering job opportunities with startups to see if it's the right fit for you.