Should Earn Lot More: Deepak Shenoy's Response To Urban Company Report On Employee Salary

Deepak Shenoy, CEO of CapitalMind, responded to a report that reveals that Urban Company service workers earn more than entry-level IT professionals and said that "they should earn a lot more".

The SEBI-registered portfolio manager shared his views via a post on social media platform 'X' and also added that since the supply of service workers like painters, electricians or carpenters is far lesser than entry-level IT professionals, they should be paid more.

The report which claimed that service workers at the urban company earn greater than entry-level IT professionals was addressing the question — "Why do service professionals come to the UC platform? What is their retention like, and what causes churn?"

Other than the pay, it delved into details such as flexibility of the nature of work even in an offline setup. The report stated that not only do the service workers earn 26,000 a month with some earning more than 40,000 as well, the platform provides "flexibility to professionals, usually absent in an offline set up. More than 80% of the service professionals who have joined UC over the last three years came through referrals or organic word-of-mouth."

For comparison, the report quoted the average entry level salary of IT professionals and said, "We note that earnings on UC are 15-20% higher versus that on other gig worker platforms (3x on hourly basis). Also, for context, entry level IT jobs in India pay 30 thousand a month."

X users have taken keen interest in Shenoy's, with some saying that there should be schools for preparing/trades like carpenters, plumbers and electricians and other technicians; Shenoy also replied to this comment and said that "when the pay gets better this is what will come"

To another user who disagreed with his views and said that "Supply is deep enough" in the context of service workers, and added that demand (consumers) can’t afford to pay any more, Shenoy retorted, "Demand will pay, as they have started to for painting for instance. Will crib, but eventually will pay. Bring more supply in if we need lower prices".