CIEL Report: Health Tech Continues to Hire Despite 'Funding Winter'
Amidst a global trend of increased reliance on digital health solutions, the Indian digital healthcare sector is set to capitalise on this momentum, fuelled by heightened health awareness, telemedicine growth, technological innovation, and government initiatives. However, investment inflows have recently slowed.
A study by CIEL HR, Health Tech Sector Employment Trends Report reveals a significant 74 per cent employment surge in Health Tech over the last two years, a testament to the sector's initial investment-driven growth. The year 2023 experienced a 'funding winter,' a marked investment downturn, leading to a hiring deceleration, particularly noticeable from August to December.
Despite the cost-cutting and a slowdown in hiring, companies continued to fill the roles in sales and business development followed by the critical roles in technology and product development all through the preceding 12 months. As a result, employment in the sector beat the market trends and continued to grow by 9 per cent.
Mr.Aditya Narayan Mishra, CEO of CIEL HR stated "Health Tech sector is bound to grow rapidly due to the socio-economic changes in India and the competitive advantages we offer for the world in patient care as well as in manufacturing and R&D. We have been seeing the upswing in the recent times consistently. Despite the funding winter, the hiring numbers have grown and the outlook for the year ahead is significantly stronger. Companies must fine-tune their strategies for talent attraction and retention to make the most out of the opportunity available for us."
Currently, organisations are actively seeking professionals across various domains including software development, data analytics, and quality assurance. Available positions encompass a wide range of roles such as DevOps Engineer, Mobile App Developer, Full Stack Developer, Data Scientist, and Data Engineer. Within the IT & Engineering sector, key job titles being sought after include Software Developer, Software Engineer, Product Manager, and AI Engineer. Similarly, in Business Development and Sales domains, prominent positions in demand include Sales Manager, Business Development Manager and Corporate Sales Manager.
Employers are particularly seeking candidates proficient in Python, .Net, Data Science, MS Dynamics, AI, as well as possessing expertise in data security and compliance protocols. Leading companies driving the recruitment efforts include Access Healthcare, Tata 1mg, PharmaEasy, Redcliffe Labs, Pristyn Care, MediBuddy, and HealthifyMe.
The report also delves into the distribution of hires across organizational levels, revealing that 44 per cent of hires were allocated to entry-level and junior positions, while 35 per cent were filled at the mid-level, with individuals possessing 5 to 10 years of work experience. Additionally, 21 per cent of positions were appointed to seasoned professionals with 10 to 30 years of expertise.
Other key findings: -
Ø In India, gender diversity stands out as one of the highest in the health tech sector as women constitute to 24 per cent of the overall workforce, with 18 per cent working in executive teams.
Ø Approximately 50 per cent of Health Tech executives are open to new opportunities, reflecting industry dynamics, market competition, a desire for innovation and job satisfaction enhancement.
Ø High attrition rates attributed to its startup nature and associated challenges, resulting in a median tenure of 2 years, notably lower compared to traditional sectors like EPC and BFSI, which boast median tenures of 5 years and 4.8 years, respectively.
Looking ahead to 2024 and beyond, the Health Tech sector anticipates regaining momentum after the brief slowdown experienced in Aug-Dec'23. With a projected employment growth of 15-20 per cent, the sector is expected to witness a surge in demand for skilled professionals across various domains. To stay ahead in this rapidly evolving landscape, companies must embrace innovation, foster diversity and inclusion, and invest in talent development initiatives. By doing so, the health tech sector can not only address current healthcare challenges but also drive significant advancements in patient care, technology, and research, ultimately shaping the future of healthcare delivery in India and beyond.
The report is based on the data and analysis of 42,166 employees in 38 leading Health Tech organisations operating in India. The job analysis is based on data collected from 241 job postings on Job portals.
