Despite the economic downturn, several early-stage start-ups are planning to man up their workforce. As per a survey, this is primarily driven by new project orders, additional funding raised from investors and expansion strategies.
Over 80% of Start-ups Planning to Increase Manpower
As per the FICCI Randstad Start-up Hiring Trends Survey which surveyed as many as 300 start-ups, 80.49% of the total start-ups surveyed stated that they plan to increase their manpower hiring in 2023, while 15.78% plan to maintain their existing headcount, majority being early-stage.
Viswanath PS, Managing Director MD and CEO, Randstad India said that “With the emergence of several new-age innovative organisations across sectors, the Indian start-up ecosystem will be a significant contributor to India’s economic growth over the next few years. More importantly, these start-ups will eventually go on to create unique employment opportunities and career paths, innovation and competitive dynamics in the world of work”.
Around 80% of early-stage start-ups, those with a current workforce of fewer than 20 employees, are actively seeking to expand their workforce in 2023.
The survey said that these start-ups have secured Series A and Series B funding, are well-capitalised, and actively seeking to hire new talent.
Rohit Bansal, Chairman – FICCI Start-up Committee said that the “The dynamic working environment in start-ups provides the ideal training ground for aspiring entrepreneurs who then move on to create their own start-ups. This creates a virtuous cycle of growth, with each successive cohort adding jobs and enterprises. With their Pan-India footprint, start-ups create jobs and economic opportunities beyond just the top cities and are key partners in India’s growth story.
Sector wise Hiring Plans: Survey
Speaking about the various sectors, then it is the healthcare (13%), IT/ITes (10%), agri or agritech (8%), AI/ML/deeptech (7%), fintech (7%) and manufacturing (7%) as per the intent to hire.
The survey also threw light upon the attrition rate in the industry and attributed it to the factors like better pay packages offered by larger corporations, as well as concerns over job security in a start-up.
Other factors which also because attrition are lack of clarity around career progression and credibility.
On the other side of coin, the hiring challenges faced by start-ups, the primary factors include a deficit in requisite skills, mismatches in salary expectations, and a reluctance among potential candidates to join a start-up due to concerns over risk perception.
