80% of early-stage startups plan to increase hiring in 2023

AI and ML Jobs


Contrary to the current trend of layoffs in large companies, a significant proportion (80%) of early-stage startups with less than 20 employees today are looking to aggressively expand their workforce in 2023 became clear. A study conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) in partnership with Randstad India.

Over 300 startups participated in the survey.

These startups have secured Series A and Series B funding, are well capitalized, and are aggressively looking to hire new talent. Ninety-two percent of these startups say their hiring decisions are driven primarily by new project orders, additional funding from investors, and expansion strategies.

Startups plan to expand their workforce, but a significant proportion of 31.92% expect to increase employment by 30% or more, and 28.08% expect to expand their team in the range of 11-20%. are planning

Sectors such as agriculture/agritech, AI/ML/deeptech, automotive, and e-commerce/delivery services are expected to see job growth in the 11-20% range, with startups in aerospace and defense, energy, and healthcare Employment is expected to increase. Recruitment activity is over 30%.

Overall, the sectors with the highest hiring intentions are Healthcare (13%), IT/ITes (10%), Agri/Agritech (8%), AI/ML/DeepTech (7%) and Fintech (7%). %) It is included. cents), manufacturing (7%).

Research shows that hiring is mostly at junior and mid-levels. About 37.97% of startups indicated their intention to hire more junior-level employees, and 27.27% of respondents plan to focus on mid-level hiring. However, the agri/agritech and automotive sectors will focus more on hiring senior-level executives.

The survey further shows that 54.38% of startups cite factors such as better salary packages offered by large companies and concerns over job security for startups as reasons for high turnover in the industry. I’m here. Other factors contributing to the decline of startups include a lack of clarity regarding career advancement and credibility.

57.28% of surveyed startups believe that ESOPs (employee stock option pools) can serve as an effective means of retaining employees. Additionally, 41.49% of surveyed startups have already implemented ESOP as a retention strategy.

Research shows that lack of required skills, mismatched salary expectations and reluctance of potential candidates to join startups are some of the hiring roadblocks startups encounter during hiring.

Rohit Bansal, chairman of the FICCI startup committee and co-founder of AceVector Group and Titan Capital, said startups will create a variety of jobs as they grow and mature. Early opportunities arise when founders join early teams that help establish the business.

“During the growth and expansion phase, when businesses expand and various initiatives mature, we see a multiplier effect on job creation. offering, entrepreneurs then launch their own startups, which creates a virtuous cycle of growth, adding jobs and companies with each successive cohort. It is not just a city, it creates jobs and economic opportunities and is a key partner in India’s growth story,” he added.

Viswanath PS, MD & CEO, Randstad India said start-ups are rapidly emerging as key players in India’s employment landscape.

“With the emergence of several new age innovative organizations across the sector, the Indian start-up ecosystem will be a major contributor to India’s economic growth in the coming years. These start-ups will ultimately create unique employment opportunities and career paths, innovation and competitiveness in the world of work,” he said.

Viswanath added that the majority of early-stage startups show strong hiring appetite. This is a testament to the strength of India’s diverse talent pool available in today’s job market. “These early-stage start-ups and their ambitions for growth, he believes will facilitate the next phase of India Inc.’s emergence as the world’s most attractive employment hub.”

Startup recruitment trends

Permanent vs gig workforce

  • 57.76% of startups are looking for full-time employees
  • Only 42.24% intend to hire temporary or gig workers

Featured Geography

  • Hyderabad and Pune have emerged as frontrunners for senior-level employment, reflecting the strong will of startups in these regions.
  • In addition, mid-level employment is expected to be prominent in cities such as Kolkata, Bangalore, Mumbai, Chennai, Pune and Delhi/NCR.
  • Delhi/NCR, Bangalore, Mumbai and Hyderabad are the leading cities in this category, with a significant portion of recruiting activity across startups expected to occur at the junior level.

Required qualifications

  • 45.21% of startups are looking to hire semi-skilled employees and 41.49% of startups are looking for highly skilled professionals.
  • In terms of campus placement, the majority of start-ups (67.55%) focus on private MBA, polytechnic and state universities. Because these institutions offer quality manpower with affordable salary packages.
  • Only a small percentage (9.16%) of startups choose a leading institution such as IIT or IIM for campus placement.



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