Mumbai: As firms are compelled to pay a premium for retaining and hiring talent, Multinational research and development companies are likely to hike salaries this year, says a recent study. 

Salary in 2011 will rise based on factors such as individual performance, criticality of resources, centre maturity, experience pyramid etc and MNC R&D companies will be forced to pay premium for retaining and hiring talent, Zinnov Management Consulting says in its study on 'Compensation & Benefits Survey 2011'.

Going forward, the R&D subsidiary centres will redefine their strategy to sustain and grow their operations in India, as the need for retaining critical talent peaks, it says.

Attrition for many companies crossed 20 per cent in 2010, with only a few best in class firms managing less than 10 per cent, it adds.

"The aspirations of the employee base have changed significantly post the economic downturn. Compensation, growth aspects, exposure to various technologies are some of the key factors that influence people's decision with different experience levels," Zinnov Management Consulting CEO Pari Natrajan said in a statement here.

Companies are likely to focus on building their organisation across multiple cities to increase catchment area for talent and reduce business risks, the study says.

According to the Zinnov study, the world is now expecting more from R&D centres in India and a good global play from the country will help these centres better bargain for benefit and growth of its employees.

"MNC R&D firms have also looked at hiring from tier 2 cities and universities to optimise their cost," it said.

The MNC R&D companies are likely to continue to balance the organisational pyramid with a focus on hiring senior engineers and freshers, the study said, adding that campus hiring may pick up again this year.

The overall Indian R&D ecosystem stands at 850 centres with more than 670 companies employing around two lakh professionals.