As the Indian startup sector navigates through challenges, CIEL HR Services' recent survey on the hiring and recruitment trends in this sector, CIEL Works, has revealed that nearly 67 per cent of the surveyed workforce is open to transition to established firms.
Key findings from the survey indicate that job security ranks high on the list of concerns for employees in the startup sector, with a significant 40 per cent of the respondents expressing unease about this aspect within startup roles. Moreover, 30 per cent of respondents are lured by the promise of better pay offered by established firms, underlining the importance of financial stability in career choices. Additionally, 25 per cent of participants mentioned a lack of work-life balance as a significant factor influencing their inclination towards established companies.
In addition to this, the survey also revealed that attrition continues to be a challenge for the sector marked by an average median tenure of merely 2.3 years, considerably lower than other industries.
Commenting on the findings, Aditya Narayan Mishra, Managing Director & CEO - CIEL HR Services, said “In the rapidly evolving environment of India, startups play a vital role as key catalysts for growth, fueling innovation and generating employment in diverse sectors. With 65% of companies planning to increase hiring in the coming months, the future looks promising for the startup ecosystem; we expect this ecosystem to revive by the end of this year. However, startups need to prioritise employee retention and provide comprehensive value propositions that prioritise employee well-being, career advancement, and work-life balance. This will help employees regain their confidence in startups and reduce attrition.”
CIEL Works by CIEL HR Services is a talent trends report that outlines insights from an in-depth analysis of hiring and recruitment trends across sectors. CIEL Works - Startup Report 2024 is based on the data and analysis of 1,30,896 employees across 70 startups in India, along with 8,746 job postings sourced from various job portals.
Other key findings from CIEL Works - Start-up Report 2024:
● The report highlights that early-stage funding, which started at $151.22 million in January 2023, experienced a gradual decline over time. However, it has shown a consistent increase since November 2023. This resurgence in funding is a positive indicator of the growth and stability of early-stage startups.
● Software development roles are the most in-demand, constituting 18 per cent of job requirements in the startup sector. This is closely followed by various sales roles, including pre-sales, retail sales, and enterprise sales, reflecting the need for skilled professionals to drive technological and commercial growth.
● Startups with more employees and good HR practices are implementing various initiatives to overcome high attrition rates, such as offering attractive compensation packages, prioritising employee well-being, adopting remote-first policies, and providing robust employee stock option plans. These measures aim to enhance employee retention and job satisfaction.
● The majority of job openings (49%) are at the mid-senior level, followed by entry-level roles (40%). Jobs at the director and executive level remain limited at 6 per cent. This distribution indicates a strong demand for experienced professionals and opportunities for newcomers in the startup sector.
● A notable 22 per cent increase in startup job listings, as identified through analysis of prominent job portals. This surge in hiring is directly correlated with a consistent increase in funding activities, mainly in early-stage startups.
