According to FICCI and Randstad India research, about 80% of early-stage startups (less than 20 employees) will have no employees in 2023, despite the current trend of layoffs among large companies. are actively trying to expand.
In particular, these startups have secured Series A and Series B funding, are well-capitalized, and are actively seeking new talent, according to a survey of startup hiring trends. rice field.
“About 92% of these startups say their hiring decisions are driven primarily by new project orders, additional funding from investors, and expansion strategies,” it added.
Startups plan to expand their workforce, but a good portion – 31.92% expect a 30% or more job increase. 28.08% of companies plan to expand their team in the range of 11-20%.
Sectors such as agriculture, agritech, AI/ML, automotive, and e-commerce services are expected to see employment growth in the range of 11-20%. By contrast, aerospace, defense, energy and healthcare startups are expected to increase their hiring activity by more than 30%.
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, 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 also found that 54.38% of startups cited factors such as better salary packages offered by large companies and concerns about job stability at startups as reasons for high turnover in the industry. was shown.
Other factors contributing to the decline in startups include a lack of clarity around career progression and credibility, he added.
Interestingly, 57.28% of surveyed startups believe that employee stock option pools (ESOPs) can serve as an effective means of retaining employees.
Additionally, 41.49% of surveyed startups have already implemented ESOP as a retention strategy.
Rohit Bansal, Chairman of the FICCI Startup Committee, said: Creation is seen during the growth and expansion stage, when the business expands and various initiatives mature. ”
Bansal added that the startup’s dynamic work environment provides an ideal training ground for aspiring entrepreneurs who will then launch their own startups. This creates a virtuous cycle of growth, adding jobs and firms with each successive cohort.
He also said that startups with a footprint across India are key partners in India’s growth story, creating jobs and economic opportunities not just in top cities.
Viswanath PS, MD & CEO, Randstad India said: It plays an important role in the Indian employment landscape. ”
With the emergence of several new-age innovative organizations across the sector, India’s startup ecosystem will contribute significantly to India’s economic growth in the coming years, PS explained.
PS added, “More importantly, these startups will ultimately continue to create unique employment opportunities and career paths, innovation and competitiveness in the world of work.”
