Expert Speak: Beyond compensation, can recognition attract young talent in Indian Ad Industry?

As the advertising industry grapples with the need to secure better talent, how can they attract the youth? Beginning with better remuneration and recognition, experts suggest ways to attract young talent in the Indian ad industry.

Recently, conversations on Twitter X have been strife with recruiters baffled over the demands young freshers from various industries make for their pay. A fresher demanding a Rs 50k payment for a four-day four-hour/week job might seem preposterous. However, the internet has also seen freshers with a 50k payment expressing the difficulties of managing their expenses in a metro city. 

Interviewed a fresher for a litigation associate post who wants 4 days work week, 4 hrs/day work (because he doesn't like going to court and will only be in chamber he said), and 50K salary in Kolkata. Bless this generation. ❤️

— Jhuma (@courtinglaw) July 23, 2023

Why are fresher salaries so low? How is someone supposed to survive on it in a metro city? With 50k a month you'll barely have any savings.



Not everyone can take money from their families!

— Medha Ganti (@mehhh_duh) April 25, 2023

A young professional entering the corporate world may have rose-tinted glasses on when it comes to expectations regarding the pay structure and the work environment. However, when it comes to the advertising industry, the average salary for employees across junior and mid-levels of the pay scale remains the lowest. 

Randstad’s Salary Trends Report in 2022 stated that Advertising, marketing and public relations entered as one of the ‘Top 6’ industries in terms of salary placements. While it stands sixth in the junior and mid-level roles, it is a strong third in the senior-level roles.

We also see the advertising industry in India making massive strides globally, with young teams taking center stage at prestigious awards shows like Cannes Lions and being the creative minds behind fresh campaigns like ‘Why Is This A Swiggy Ad?’ and ‘Airtel 175 Replayed’. 

However, reports have suggested that the number of people working in marketing and advertising fell by 14% between 2019 and 2022.

If the future of the industry relies on talent and they seem to be winning in terms of ideas and execution, then where exactly is the advertising industry lacking when it comes to attracting young talent in the Indian ad industry? Can better remuneration and recognition attract better talent? Experts weigh in.

What makes an attractive career in advertising

Unmesh Pawar, Chief People Officer, South Asia, dentsu notes while companies have been compelled to adapt their strategies and processes to stay relevant and competitive, the industry's approach to employee compensation has not kept pace with these changes until recently.  

He further says, “There is a compelling need to have a relook at the pay structure to attract and retain top talent. While revising the pay structure can be one factor in attracting more talent, it is not the sole solution.”

As per Pawar, the entry salary in the industry may range anywhere between INR 3 – 5 lacs per annum, talent with a penchant in Modern Creativity, New Media and Next Gen Tech and from premier institutes do command a premium of at least 30%.

Rajdeepak Das, Chief Creative Officer, Leo Burnett talks about how not paying young people well results in them eventually joining industries that would pay them better.

He continues, “If money is there, we can hire the best people. We hire from IIT, Ivy League colleges and we hire dropouts too. We hire people who are of a different kind. We have made our office a fun playground for them so that they have fun coming to the office.”

A HirePro report on salary packages offered to students from IITs in 2022 showed that nearly 54% of 7,020 students in the top tier of IITs and 50% of 2,250 students in the next tier of IITs received job offers with salary packages ranging between Rs 10-16 lakh. 

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India’s younger professional generations, like Gen Z (51 per cent) and millennials (51 per cent), are also most likely to ask their boss for a raise as compared to Gen X (40 per cent) and Boomers (26 per cent), LinkedIn Workforce Confidence Index said.

When graduates from IITs demand a salary range of lakhs, what more can the advertising industry do to further attract them? 

Focusing on the Culture

Nupoor Pradhan, Head - People Operations, SoCheers on the other hand says, “Ad agencies recognize the value that talent from prestigious institutes like IIT can bring to specific roles, but in a creatively oriented industry, passion, enthusiasm, and a creative perspective hold greater importance than the institute's brand name.”

She goes on to note that by combining competitive pay structures, performance incentives, and recognition programs, a competitive environment can be fostered that rewards exceptional skills. Embracing this understanding unlocks the full potential of top-tier talent, driving innovation and propelling the industry forward.

Agencies have been working on compensating the talent through other rewards like performance-based and non-monetary rewards. 

For example, Pawar mentions dentsu India has launched a ‘Learning Hour’ series to foster a learning culture by covering topics from managerial skills to strategic decision-making. They have also launched Dentsu RISE, the Flagship Reward and Recognition Program to acknowledge achievements, value behaviours and inspire collaborations. 

Rita Verma, President and Head – HR, DDB Mudra Group observes that any agency’s performance is deeply linked to the clients they partner with and the overall economic environment. So, when the economy does well, they are in a better position to pass on that benefit to employees. All compensation decisions are based on the cost of living standards, inflation and other talent market conditions.

She continues, “The very definition of employee value proposition has changed. People today look beyond a pay cheque, to evaluate how their career fulfils them, creatively challenges them and provides opportunities for growth and development.” 

At DDB Mudra Group, they have prioritized company culture and mentorship with industry-first talent programs such as the Phyllis India Project which has now extended to Asia. Other programs like DDB Next, Emerging Talent, High-Performance Lab, and Management Vitals address the growth and training needs of an employee at each stage of their lifecycle.

According to a case study by Randstad, it has been observed that employees participating in mentoring programs are 49% less likely to leave the organization. 

Tanima Dhawan, National HR Director, Zoo Media states, “To compare pay grades in the service industry to those in consulting for example is sheer stupidity but an effective salary benchmarking exercise can be an extremely helpful tool in maintaining a competitive edge in attracting and retaining top talent. As for diversity, I think advertising is also one of the industries that values diversity like no other industry.”

By implementing a fair and transparent pay structure, organizations can mitigate biases and inequalities that may exist in compensation.

Dentsu’s Pawar further highlights the importance of DEI in the advertising culture. “To incorporate DEI into their Compensation & Total Rewards programs, organizations may conduct pay equity analysis to ensure that pay is equitable across different demographic groups. At Dentsu India, we actively track the pay level and increase of our female talents as against the male colleagues to identify and resolve any possible gap.”

In the end, it can be noted that talent can be fostered by keeping a focus on young professionals and the industry as a whole has a role to play in the same. 

Russell Barrett, Chief Creative Experience Officer, TBWA\India had this to say when we spoke to him at an event. “The absence of talent, when it's found to be lacking, is the responsibility of agency leaders.”

(With inputs from Karuna Sharma)