The study also revealed that that about 83 percent of the startups are paying stock options to their top management level employees. As part of long-term incentive to employees, the start-ups on an average designated 11 percent of their stockholding for employees. When it comes to hiring, around 55 percent of the startups in India are using professional networking sites for hiring management-level employees, while mid and junior management roles were hired through recruitment agencies and job portals.

Interestingly, the Indian start-ups also faced high employee attrition rate that ranged from 17 percent to 21 percent, driven by pay packages as the most common reason for the same job. It was also found that job security was one of the least important reasons for attrition. “The sizes of a start-up, coupled with the stage of funding, emerge as the dominant drivers of an organization’s practices,” said Rahul Khanna, managing director, Canaan Partners.

"Indian start-ups are becoming good pay masters. Venture Capital funds are backing (their investee) companies to hire good talent," said Debabrat Mishra, Director at Hay Group India . "We are able to get established talent to join start-ups without any worries of pay cuts," claims Rahul Khanna, Managing Director, Canaan Partners, a VC firm. "Today 10 per cent of equity in startups is kept aside for employees other than founders. This helps in attracting good talent," he adds, reports TOI.

(With inputs from agencies)

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