60% IT Employees Optimistic About Jobs In India; But 38% Startups Have Run Out Of Cash
On June 16, a LinkedIn survey found that around 40% Indian professionals believe that the number of jobs and scheduled interviews will decrease in the next 2 weeks.
Although, 63% employees at large organisations – firms with over 10,000 workforce – think their companies will be better off one year from now, said the survey.
On the other hand, startups across the country are in a dire situation due to the economic impact of COVID-19 and a LocalCircles survey points out that 38% of them have already run out of cash, and another 30% have money left for a maximum of 3 months.
Read to find out more…
Employees Have a Steady Confidence In Their Employers!
Over the past 3 months, many businesses have shifted to a remote working model due to the pandemic resultant lockdown to ensure business continuity.
The fifth edition of the LinkedIn Workforce Confidence Index, based on responses of 2,903 professionals in India, during May 4 to 31 shows that while India’s overall confidence remains steady with a composite score of plus 49, the country’s confidence in jobs is beginning to trend downward.
However, the survey also noted that employees in large enterprises are more confident about the future of their employers as compared to their peers from mid-market and small and mid-size business (SMB) companies.
The findings showed that 41% of enterprise professionals think their companies will do better in the next 6 months, while 63% think their companies will be better off one year from now.
However, ‘the enterprise professionals are least confident about the future of their jobs, finances and careers, when compared to their SMB and mid-market peers’ as shown on their Individual Confidence Index (ICI) scores.
This fortnight’s findings show that 3 out of 5 (60%) marketing professionals feel confident about being effective when working remotely.
Employees Busy Upgrading Their Skills As They Anticipate Decrease in Job Opportunities!
The Workforce Confidence Index is a fortnightly pulse on the confidence of the Indian workforce. The recent survey uses a scale from -100 to +100 to reflect professionals’ current sentiments about the job market, their financial status, career progression, and their expectations going forward.
Meanwhile, 1 in 3 (33%) respondents said they will now spend more time working on their resumes and preparing for interviews. Moreover, there is a rising focus on upskilling, as 67% of respondents said they will continue to increase the time spent on online learning.
The survey noted that 52% of healthcare, 48% of corporate services, and 41% of manufacturing professionals foresee a decrease in investments in the next 6 months.
The professionals from healthcare, manufacturing and corporate service industries are more likely to anticipate a decrease in personal spending and personal investments in the next 6 months.
Start-ups Running Out Of Funds, Shutting Down?
On March 25, a nationwide lockdown imposed to curb the spread of COVId-19 infection has had a severe impact on the economy and more so for the startup ecosystem as economic activity almost grinded to a complete halt.
LocalCircles, a community social media platform, in a survey which received over 28,000 responses from startups, small & medium enterprises (SMEs), and entrepreneurs across the country reveals that even though Unlock 1.0 was announced to lift restrictions, the situation on the ground has not really changed much when compared to during the lockdown period.
The survey noted that only 16% of the startups have 3-6 months of cash left and 12% with less than a month. In fact, 4% of these startups have already shut down.
The survey said, “The comparison from April to June 2020, shows that the percentage of startups and SMEs out of funds has risen from 27% to 42%, showing a worrisome situation.”
In order to prepare themselves for the new environment, over 64% of the startups have resorted to cutting expenses in spaces such as marketing, human resources, fixed operations, and deferring of tax payments, according to the survey. All these measures are being undertaken by the startups to weather the economic crisis.
The good news is that 35% of the startups expect to register growth in next 6 months, though an equal percentage of them are expected to scale down their operations.
“Many companies have been trying to raise funds in the last few months but have not been able to do so due to the reduced interest of investors and liquidity drying up,” the survey of LocalCircles said.
Citing the various incentives announced by the government under the Atma Nirbhar Bharat stimulus package and how it benefits the startups, the survey pointed out 57% of them are of the view these steps are unlikely to benefit them.
The pain due to the lockdown is going to linger for quite some time now for the startup ecosystem !