Companies loosen purse strings for talent in smaller cities

MUMBAI: Location-agnostic companies are deepening their faith in skill sets.
Tier-2 cities are emerging as major talent hubs where companies are investing proactively. Thiruvananthapuram, Chandigarh, Kochi, Bhubaneswar and Vadodara have emerged as the top tier-2 cities in terms of salaries offered.
“While Bengaluru and Mumbai continue to top the ranks in terms of pay packages, the gradual emergence of tier-2 cities is a promising trend for India Inc as local talent will get ample exposure to showcase their skills and potential while earning healthy pay in accordance with their skill sets,” said Randstad India MD & CEO Viswanath P S.
According to Randstad’s annual salary trends report, shared exclusively with TOI, professionals across levels can expect higher salary increments next year, especially those living in smaller metros and tier-2 cities. The report says the national average ‘cost-to-company’ (CTC) of Rs 5.8 lakh, Rs 18.1 lakh, and Rs 34.2 lakh for junior, middle and senior levels, respectively, reiterates consistent forecasts that India will post the highest salary increments in 2023.
Among tier-1 cities, Chennai, which has seen high demand for talent across automotive, manufacturing, SaaS, deep tech, fintech, edtech, and consumer tech businesses, shows the highest jumps in salaries across all levels when compared to the previous year.
Pune has jumped up the ranks in the junior and middle levels. Pune has been a strong centre for the manufacturing and auto industries — and, in recent years, for the IT/ITeS industry too. Its average CTC of Rs 5.9 lakh at the junior level and Rs 18.5 lakh at the middle level shows the willingness of organisations to counter the severe competition for talent.
Hyderabad, which has expanded its reach beyond the IT industry to pharma, banking and finance, and real estate sectors, has risen four ranks in the senior level to occupy second place, with an average CTC of Rs 35.7 lakh.
Bengaluru leads in salary pay scales across the junior and middle levels — at an average CTC of Rs 7 lakh and Rs 19.4 lakh, respectively. However, at an average CTC of Rs 36.1 lakh, Mumbai takes the honours for the highest salaries at the senior level.
Thiruvananthapuram has moved up to first place in salaries paid at the junior level in tier-2 cities. Chandigarh’s move to grow the IT industry has paid off, with the city retaining its top rank for salaries in the middle level (average CTC, Rs 15.2 lakh).
Balancing its core strengths in aluminum, iron and steel, paper and cement, with investment service sectors like IT, has ensured that Bhubaneswar’s average CTC at senior level (Rs 33.7 lakh) is very close to the national average. Jaipur, which has become home to auto, IT/ITeS, cement, mineral and gems & jewellery industries, has surged to the fifth spot in senior-level salaries (average CTC, Rs 24.1 lakh).