Zinnov released a ‘Attrition, Hiring and Salary Increase 2013’ report on the MNC R&D ecosystem that showed sustained growth levels in hiring and reduction in attrition over the previous financial year. The report found that depreciating rupee value has contributed positively in offsetting macroeconomic challenges.
According to the report, India currently hosts 1,031 MNC R&D centers, growing at ~4% year or year, with an overall employment base of 2,44,000 growing at ~11% year on year. It also stated that of this talent pool, ~59% is employed in Software, Telecommunication and Semiconductor verticals. Software companies alone employ ~35% of the total R&D talent present in India.
Commenting on the study, Nitika Goel, Sr. Program Manager – Globalization Accelerator Platform (G.A.P), Zinnov, said, “Innovative employee engagement initiatives, stable salary growth, and the increasing availability of higher-value roles and opportunities in India have helped maintain stability in attrition, despite expectations to the contrary”.
“Further, MNCs have also stayed their course on hiring, with a specific focus on lateral hires even at junior levels. There is a clear focus on investing in people and we see this trend continuing in 2014”, she added.
The study found that as MNCs increasingly transition higher-value R&D functions to India, experience levels across the industry have increased from 5.7 years to 7.2 years over the past four years. NCR hosts the highest percentage of employees with over 12 years’ experience, while Bangalore and Chennai have the highest proportion of employees with 8-12 years’ experience (at 23% and 24%, respectively). Across regions, 39-55% of the talent pool lies in the 4-8 years’ experience level. Additionally, MNC R&D centers in NCR seem to be attracting more senior technical talent with disproportionately higher salaries, while the difference among regions is at par for all other job levels in engineering and managerial roles.
The released study read that in 2013, MNC R&D centers witnessed voluntary attrition levels of 9.4%. This is a significant decline from 2011 when it was ~17%, while remaining at similar levels as 2012 when it was 10.7%. Detailing specifics about hiring, the study highlighted that it remained range-bound in 2013 at 20.1%. While this aspect has declined from the boom years of 2010-11 when it breached 30%, it is relatively stable in comparison to 2012.
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