Decoding how India’s GCCs are acing the compensation game

When mapping out the consumer journey for any offerings, companies aim to deliver a top-notch experience at every touchpoint, one that is hyper-personalized and centered around the customer’s needs and desires. Modern employees are no different. Seeking more than just a fat pay check, they desire a role that aligns seamlessly with their individual needs, lifestyle, and career aspirations. And their benefits package needs to reflect that.

Our recent compensation and benefits trends survey, encompassing insights from over 6,000 highly skilled professionals in the tech industry, revealed that 80% of respondents are dissatisfied with their current compensation structure. Diving deeper, we found that over three-quarters of respondents, 77% identified hybrid work arrangements as the most coveted work benefit.

However, we also identified a positive trend - within India, the workforce across various Global Capability Centers (GCCs) reported a higher degree of satisfaction with their bundle of benefits. For example, 60% of GCC employees are satisfied with their compensation and benefits, out of which, 78% are the happiest with the tax-saving benefits offered by their employers; 67% of GCC employees feel that RSU (restricted stock units) or company stocks are a massive reason for their interest in the company and their long-term commitment and 62% of employees feel that their employers' learning and development initiatives align well with their career goals.

Prioritizing Career Progression

One of the most significant advantages of working at a GCC is the opportunity to collaborate with colleagues from different parts of the world and gain valuable insights into diverse work cultures and best practices. The opportunity to grasp global market dynamics, connect with industry leaders worldwide, and expand their professional horizons is a highly valued benefit for today’s workforce. Investing in training on cultural intelligence and global market strategies can further equip employees to excel in a multinational environment. These companies are also prioritising upskilling, learning, and development to significantly enhance professional growth opportunities.

Offering Competitive Compensation

GCCs are strategically located in regions with a lower cost of living compared to the headquarters, enabling companies to offer attractive salaries that are competitive within the local talent market. This tactical advantage ensures that employees in GCCs receive compensation that meets or exceeds local market standards, resulting in higher satisfaction compared to similar roles within their region.

At the same time, many GCCs also offer adjustments for the cost of living or an attractive relocation bonus, making their compensation packages considerably more appealing. With an increasing number of companies choosing tier 2 and 3 cities like Pune, Mysore, and Bhubaneshwar for setting up their GCCs, the cost of living is further lowered, consequently translating into higher disposable income for team members.

While a generous pay structure remains a powerful motivation, companies have been able to broaden the definition of total compensation by thinking outside the box. Incorporating various non-traditional elements like equity or restricted stock units (RSUs), travel stipends, child care allowances and commuter benefits within the CTC is a great way to expand the scope of compensation packages. Offering non-taxable allowances such as housing and education benefits can also significantly enhance the perceived value of the compensation while offsetting the ever-increasing cost of living.

Work-Life Balance Initiatives

Due to their global operations and the necessity of maintaining synchronized work hours across multiple time zones, GCCs frequently adopt flexible and hybrid work models. Undoubtedly, hybrid and flexible work arrangements are among the most highly valued and sought-after perks for today's talent, particularly among millennials and Gen Z.

GCCs are also prioritizing employee well-being with a range of benefits encompassing physical and mental health support. This includes tailored wellness programs, nutrition counselling, subsidized gym memberships, and access to mental health resources such as counselling and stress management workshops. These personalized wellness initiatives are instrumental in fostering a sense of value and support among team members

Effective employers recognize the crucial role that compensation and benefits play in attracting, hiring, and retaining top talent. More importantly, they understand that a one-size-fits-all approach to employee benefits is outdated and insufficient.

Vikram Ahuja

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Vikram Ahuja is Co-Founder of ANSR and CEO of Talent500.