Funding

Hire a recent graduate through the CIR

January 8, 2024
min.
Explore the related resource

In this article, we will explore the Jeune Docteur program, a French initiative designed to help PhD holders find employment in the private sector.

Young Doctor Program

The Young Doctorate Holder Program is designed to promote the integration of PhD holders into the private sector. It is a specific provision of the CIR that offers a substantial tax benefit to companies that hire a PhD holder for the first time under a permanent contract.

According to the ANRT study titled “Research Tax Credit: Competitiveness and Attractiveness,” 33% of R&D positions at French companies that benefit from the CIR are held by PhD holders, compared with 12% at companies that do not benefit from it.‍

A program designed to support hiring

This program helps promote the long-term hiring of young PhD graduates by companies, which will benefit from tax incentives as well as new, mature, and experienced human resources capable of establishing a research framework within the company.

Criteria for Young Scholar Status

A junior doctor is a doctor who has not yet signed a permanent contract (CDI) in France or abroad.

To avoid any confusion, we would like to clarify that the term “early-career researcher” refers neither to age nor to experience. In fact, after earning their doctorate, many researchers spend several years working on postdoctoral fellowships or fixed-term contracts before securing their first permanent position.

It should be noted that a contract equivalent to a permanent contract within a public institution—such as a civil service position in a laboratory or university—does not entitle the doctor to this status.

What are the benefits for your research tax credit?

A young PhD can help strengthen your innovation efforts and accelerate your development. Indeed, they have proven professional experience in R&D and a broad range of skills (project management, scientific methodology, communication, etc.).

Hiring a recent PhD graduate is a significant advantage for companies claiming the CIR tax credit and serves as a strong indicator of R&D activity, particularly in the eyes of the tax authorities.

Finally, by including total compensation and operating costs in personnel expenses, a young doctor’s salary can be fully funded for two years through the research tax credit.

Calculating Your Financial Aid

Let’s take the example of a young doctor who spends 90% of their time doing research in an R&D team:

1. The young doctor's gross salary was set at €50,000

2. Thanks to this bonus, the personnel expenses eligible for the CIR are doubled: 2 × 50,000 × 90% = €90,000

3. Next, let’s add the operating costs (100% instead of 43% for research staff at a company that does not employ recent PhD graduates): 90,000 * 2 = €180,000

4. Let the total eligible expenses for the CIR be €180,000

5. The CIR amounts to 30% × 180,000 = €54,000, which is more than the cost of the young doctor to the company.

It should be noted that a profile of this type is generally assigned almost entirely to R&D, so the returns may be higher.

As we have calculated, the Young Doctor Program not only covers the full cost of hiring a young doctor but also provides additional funding to offset the expenses incurred.

What are the terms and conditions?

To be eligible for the Young Doctor program, several conditions must be met:

  • As stated above, the young doctor’s first employment must correspond to the first permanent employment contract entered into after obtaining a doctoral degree
  • The number of salaried research staff at the company must not be lower than that of the previous year
  • The position offered to the young doctor must be commensurate with his or her level of education

Recruitment: Our Partner, RD2 Conseil

RD2 Conseil is a recruitment firm specializing in identifying scientific talent to meet the R&D needs of innovative SMEs and private companies seeking to acquire cutting-edge expertise and dedicated human resources in the field of innovation. As a long-standing partner of Dynergie, we regularly turn to RD2 Conseil to help our clients find recent PhD graduates who meet their requirements.

A conversation with Laurent Masscheleyn, founder and CEO of RD2 Conseil

“Our clients are innovative companies—primarily startups and small and medium-sized businesses—operating in a wide range of industries, including IT, mechanical engineering, chemistry, electronics, and more…”  

In this context, we are specifically seeking high-level scientific professionals, particularly PhD holders and recent PhD graduates (PhD, 8 years of higher education).

Based on the experience I’ve gained in recent years recruiting these types of candidates, I believe that hiring a recent PhD graduate offers four key advantages for an innovative company:

1. Possess advanced scientific and technical expertise. The doctor holds a master’s degree (engineering or other) and has at least three years of professional research experience addressing complex issues.

2. The young doctor’s transferable/personal skills, commonly referred to as “soft skills.” This is truly a young professional with a range of skills that are particularly valuable to a company (communication, project management, scientific monitoring) and the ability to grow and take on responsibilities quickly (thanks to their ability to learn, their maturity, and their passion for innovation…).

3. The exceptional financial incentive provided by the Research Tax Credit, which allows for the full funding—or even overfunding—of these candidates’ total compensation for a period of two years!

The scientific credibility that comes from having a PhD on an R&D team—particularly within the organization in the event of an audit of the CIR—as well as with international partners, for whom a PhD is a mark of trust in matters of innovation and research.

The greatest satisfaction, as a recruiter, often comes from feedback from certain clients who initially planned to hire a candidate for a “traditional” engineer or PhD position within an already established R&D team , but who then decide to quickly promote the newly hired PhDs to leadership roles once they recognize their technical and interpersonal skills.

Example

We could cite the example of a young company, an environmental consulting firm, which did not claim the R&D tax credit because it lacked sufficiently qualified staff to be eligible to conduct R&D activities.

After Dynergie submitted an official ruling confirming the eligibility of the proposed projects, RD2 Conseil took over to identify a suitable early-career researcher, who was hired and took charge of the research projects, working directly alongside the executive.

"In general, RD2 Conseil’s clients express their satisfaction with the ability of the recent PhD graduates we hire to tackle the projects assigned to them head-on and to quickly identify concrete solutions: these young PhDs have what it takes to be ‘problem-solvers’—not just ‘researchers’!"

Dynergie helps you obtain your CIR

Dynergie, recognized as a CIR-CII provider by the Business Ombudsman, is your trusted partner to guide you through the CIR process. We offer specialized expertise and in-depth knowledge of the specific requirements of the Young Doctorate Holder program. Our goal is to help you maximize your Research Tax Credit by optimizing the integration of young doctorate holders into your team.

Damien Villiers-Moriamé

Senior Innovation Financing Consultant - Head of the Innovation, IT, and Electronics Tax Practice - Partner - Lyon
LinkedIn

I assist innovative companies of all sizes in securing public funding (CIR-CII, JEI, bpifrance, CIN, etc.). My technical expertise spans a variety of fields, including IoT, AI, e-learning, embedded systems, and service robotics. My daily work involves supporting entrepreneurs through key and critical stages of their projects (developing a financing plan, creating a business plan, and validating the business model).

Need help?

Our innovation experts are here to help.

Who is eligible for the CIR?

The Research Tax Credit (CIR) is intended for companies that incur research and development (R&D) expenses in France. Eligibility criteria include:

  • All industrial, commercial, or agricultural businesses, regardless of their size, legal status (corporation, sole proprietorship), and tax regime (subject to income tax or corporate tax).
  • Companies that invest in basic research, applied research, or experimental development. The scope of activities eligible for the CIR must clearly demonstrate compliance with five cumulative criteria: novelty, creativity, uncertainty, systematization, and reproducibility.
  • Eligible expenses include salaries, operating expenses, depreciation and amortization, research expenses incurred through CIR-certified third parties, intellectual property expenses, etc.

Note: For R&D work conducted as part of research collaborations with accredited research and knowledge dissemination organizations, a new incentive has been available to companies since 2022: the Research Collaboration Tax Credit (CICO or CRC).

When should you apply for the CIR?

To claim the CIR, it is essential to time your application correctly. The claim must be filed once a year, when the company files its tax return.

What is the salary for someone with a Ph.D.?

A young doctor's salary can vary depending on several factors, including the industry, the size of the company, the field of research, and the candidate's experience, among others.