According to the Federation of Indian Chambers of Commerce and Industry (FICCI) Randstad India (HR Services Organization) Startup Recruitment Trends Survey, almost 80% of early stage startups currently with less than 20 employees are about to grow. their workforce in 2023, despite the current trend of layoffs among large companies.
Notably, these startups have secured Series A and Series B funding, are well capitalized, and are actively seeking new talent. 92% of these startups say their hiring decisions are driven primarily by new project orders, additional funding from investors, and expansion strategies.
With their footprints across India, start-ups have become key partners in India’s growth story, creating jobs and economic opportunities not just in major cities.
Rohit Bansal, Chairman – FICCI Startup Board, Co-Founder of AceVector Group & Titan Capital
Rohit Bansal, Chairman of the FICCI Startup Committee and co-founder of AceVector Group and Titan Capital, said: As this report highlights, the first opportunities arise when founders join the early team and help establish the business. During the growth and expansion stage, when businesses expand and various initiatives mature, we see a multiplier effect on job creation. A startup’s dynamic work environment provides an ideal training ground for aspiring entrepreneurs who then launch their own startups. This creates a virtuous cycle of growth, adding jobs and firms with each successive cohort. With a footprint across India, start-ups are key partners in India’s growth story, creating jobs and economic opportunities not just in top cities. ”
These start-ups ultimately create unique employment opportunities and career paths, innovation and competitiveness in the world of work.
Viswanath PS, MD & CEO, Randstad India
Presenting insights from a startup recruitment survey, Viswanath PS, MD and CEO of Randstad India, said: We are very pleased to cite startups as rapidly emerging as important players in the Indian employment landscape. With the emergence of several new age innovative organizations across the sector, the Indian start-up ecosystem will contribute significantly to India’s economic growth in the coming years. More importantly, these start-ups will ultimately create unique employment opportunities and career paths, innovation and competitiveness in the world of work.
An exclusive Randstad study conducted in conjunction with FICCI found that the majority of early-stage startups show strong hiring appetite. This proves the strength of India’s diverse talent pool available in today’s job market. We believe these early stage start-ups and their growth ambitions will facilitate the next phase of India Inc.’s emergence as the world’s most attractive employment hub. We believe the Randstad-FICCI Start-Up Hiring Trends Survey will provide unique insights into the country’s evolving startup ecosystem, key trends, and their significant contribution to socioeconomic development and transformation. ”
Sectors with the highest hiring appetite
Startups plan to expand their workforce, but a significant portion, 31.92%, expect employment to increase by 30% or more. 28.08% of companies plan to expand their team in the range of 11-20%. Sectors such as agri/agritech, AI/ML/deep tech, automotive, and e-commerce/delivery services are expected to see job growth in the range of 11-20%. Also, aerospace and defense, energy and healthcare start-ups are expected to see an increase in employment. 30% more activity. Overall, the sectors with the highest hiring intentions are Healthcare (13%), IT/ITes (10%), Agri/Agritech (8%), AI/ML/DeepTech (7%) and Fintech (7%). %), manufacturing (7%).
Increase in mid-career and mid-career hires
The survey said that hiring is mostly at junior and mid-levels. About 37.97% of startups indicated their intention to hire more junior-level employees, while 27.27% of them plan to focus on mid-level hiring. However, the agri/agritech and automotive sectors will focus more on hiring senior-level executives.
Why Startups Face High Turnover and How to Keep It
The survey further shows that 54.38% of startups attribute high turnover in the industry to factors such as better salary packages offered by large companies and concerns over job security for startups. . Other factors contributing to the decline of startups include a lack of clarity regarding career advancement and credibility.
Interestingly, 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.
When it comes to the hiring challenges faced by startups, the main factors include lack of required skills, expected salary mismatch, and potential candidates’ reluctance to join startups due to concerns over risk perception. It is included.
Startup recruitment trends
a) Permanent vs Gig Workforce
- 57.76% of startups are looking for full-time employees
- Only 42.24% intend to hire temporary or gig workers
b) geography of focus
- Hyderabad and Pune have emerged as top contenders for senior-level jobs, 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.
c) required qualifications;
- 45.21% of startups are looking to hire semi-skilled workers 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 and engineering colleges, as well as 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.