Despite ongoing layoffs across various sectors, a joint survey conducted by industry body FICCI and HR services firm Randstad India reveals that early-stage startups are actively pursuing hiring initiatives. The survey indicates that approximately 80% of early-stage startups, characterized by a workforce of fewer than 20 employees, are planning to expand their teams in 2023.
Hiring Trends
The report highlights that many of these startups have secured Series A and Series B funding rounds, boasting sufficient capital reserves to facilitate hiring endeavors. Drawing insights from 300 participating startups, the survey underscores that hiring decisions are primarily influenced by new project acquisitions, increased funding inflows, and strategic expansion initiatives.
The majority of job openings are expected to target junior and mid-level positions. Specifically, around 38% of startups intend to recruit junior-level professionals, while 27% are focused on mid-level hiring. Notably, sectors such as agri/agritech and automotive are prioritizing senior-level C-suite appointments over junior and mid-level roles.
Sectoral Outlook
Aerospace & defense, energy, and healthcare startups emerge as the most active sectors in terms of hiring, projecting a growth rate exceeding 30%. Following closely are agri/agritech, AI/ML/deeptech, automotive, and e-commerce/delivery services sectors, which anticipate an expansion in hiring ranging from 11% to 20%.
Viswanath PS, MD & CEO of Randstad India, emphasizes the pivotal role of startups in driving India’s economic growth trajectory, foreseeing these ventures as significant contributors to job creation and career development opportunities.
Job Role Preferences
Surveyed startups display a preference for permanent job roles, with 57.76% of respondents indicating a focus on permanent hires. However, 42% of startups are also exploring temporary and gig employment arrangements.
Challenges and Retention Strategies
The startup ecosystem grapples with challenges such as skill deficits, salary expectation mismatches, and candidate reluctance stemming from risk perceptions. Additionally, high attrition rates pose a significant concern, exacerbated by layoffs and job insecurity prevalent in the startup landscape.
To mitigate these challenges, startups are leveraging employee stock options (ESOPs) as a retention mechanism, with 41.5% of surveyed startups already incorporating ESOPs into their employee benefits packages.
In conclusion, despite prevailing uncertainties and challenges, early-stage startups are poised to drive employment growth in India, with a keen focus on talent acquisition and retention strategies to navigate the evolving business landscape.
