Growth in the financial services sector is leading to a corresponding increase in the pay packages of HR leaders, according to an Economic Times report.
Newly fangled niches and segments like fintech (short for finance technology) companies and small finance banks, and the growth of NBFCs (Non-Banking Financial Companies); backed by private equity funding from investors have been the primary reasons behind this trend.
As per some search firms and industry experts, the pay packages of CHROs and HR leaders in these domains could vary from Rs. 80 lakh to Rs. 1.5 crore, which does not include bonus (could range between 20-30%) and stock options.
Explaining the rationale for this phenomenon, Vivek Kapadia, director at Vito India (an executive search firm) was quoted as saying: “HR heads with strong HR transformation experience, ability to scale businesses with a focus on people and technology, and put in place a robust framework to enable some of these platforms to unlock value, are in high demand”.
Echoing Vivek’s thoughts and presenting the investors’ perspective, Rupen Jhaveri, director, KKR India (a private equity firm) said: “To bring in a lot more focus and accountability, PE funds tend to discuss upfront with (the promoters) where management teams need to be augmented … HR head is one such role with a 360-degree view on organisational goals and drive a human capital management strategy to drive it (the goal of the company)”.
For instance, when financial services firm Avendus Capital recently appointed Agnel Victor to lead its HR function, it looked beyond the conventionally accepted skill sets deemed to be needed for senior HR professionals. Throwing more light on this, company CEO Ranu Vohra was quoted as saying: “We wanted to take on board someone to head our HR function, someone who had the experience of growing and nurturing businesses, someone who could spot and groom talent, someone who could create a cultural synergy across our businesses.”