Zinnov has released its latest study - Compensation & Benefits Survey 2012 - as part of the annual series on MNC R&D landscape in India. The study provides detailed analysis of the year gone by and predicts the way ahead for R&D centres of leading global MNCs in India, with direct impact on compensation and benefits of employees at these centres.
According to the study, 2011 witnessed the strong revival of R&D investments worldwide. The significant growth in R&D activities across the globe signals the optimism in world economy which had earlier reported a drop in R&D investments in 2010. Reflecting the steady growth globally, the R&D landscape in India too has posted rapid growth in the year gone by with an established base of over 870 MNC R&D centres. India currently boasts of an installed R&D talent pool base of over 200,000engineers growing at an average of 9% a year for the last five years.
The study observed that while salary hike in 2011 was around 13%, many companies shifted their focus towards designing a centre level core strategy, people centricity approach and process efficiency at their India facility. Furthermore, after a steep increase in 2010, R&D centres have managed to control attrition levels at 17.4% as a result of the focused approach on career enhancement by ensuring increased ownership, better work profile, and competitive pay to retain talent. Best-in-class companies have been able to keep their attrition rate well below the industry average.
Praveen Bhadada, Director-Market Expansion, Zinnov, said, "The Indian R&D centres today have come a long way and are maturing in to centres focusing on multi-city strategy, sustained career growth for employees and improved hiring strategy for balancing the pyramid."
