According to a survey of industry hiring and recruiting trends, nearly 67% of the surveyed workforce is open to moving to established companies.
The report is based on data and analysis of 1,30,896 employees of 70 startups in India and 8,746 job advertisements from various job portals.
The study indicates that job security is high on the list of concerns of startup sector employees, with as many as 40% of respondents expressing concern about this aspect in startup roles.
Moreover, 30% of respondents are tempted by the promise of better salaries offered by established companies, highlighting the importance of financial stability when choosing a career.
Additionally, 25% of participants mentioned the lack of work-life balance as an critical factor influencing their preference for established companies.
The study also found that resource exhaustion continues to be a challenge for a sector with an average tenure of 2.3 years, significantly shorter than other industries. “In India’s rapidly changing environment, startups are playing a vital role as key catalysts for growth, driving innovation and creating jobs across sectors. Startups must prioritize employee retention and provide comprehensive value propositions that prioritize employee well-being, career development and work-life balance. This will lend a hand employees regain confidence in start-ups and reduce employee churn,” said Aditya Narayan Mishra, Managing Director and CEO, CIEL HR Services.
The study also shows that 65% of startups plan to augment employment in the next six months.
The report highlighted that early-stage funding, which started in January 2023 at $151.22 million, has gradually declined over time. However, it has shown steady growth since November 2023. This renewed augment in funding is a positive indicator of the growth and stability of early-stage startups.
The report also shows that the most sought-after positions are those related to software development, accounting for 18% of the demand for positions in the start-up sector. This is closely followed by a variety of sales roles including pre-sales, retail and enterprise sales, reflecting the need for skilled professionals to drive technological and commercial developments.
The majority of job openings (49%) are for mid-level positions, followed by entry-level positions (40%). The number of director and executive positions remains constrained at 6%.
