80% Of Early-Stage Startups Are Looking To Increase Their Workforce In 2023: Report Approximately 37.97% of startups have reportedly indicated that they intend to recruit more junior-level employees, while 27.27% of respondents are planning to focus on mid-level hiring
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The Federation of Indian Chambers of Commerce and Industry (FICCI) in partnership with Randstad India, one of the leading organizations in the HR services industry, has launched their exclusive survey on startup hiring trends. Over 300 startups participated in the survey. Despite the current trend of layoffs among larger corporations, the survey highlighted that a significant proportion (80%) of early-stage startups, those with a current workforce of fewer than 20 employees, are actively seeking to expand their workforce in 2023. Notably, these startups have secured Series A and Series B funding, are well-capitalized, and are actively seeking to hire new talent. 92% of these startups stated that their hiring decisions will primarily be driven by new project orders, additional funding raised from investors and expansion strategies, as per the report.
"With the emergence of several new-age innovative organizations 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 startups will eventually go on to create unique employment opportunities and career paths, innovation and competitive dynamics in the world of work," said Viswanath PS, MD and CEO, Randstad India.
The study also stated that hiring will primarily occur at the junior and mid-levels. Approximately 37.97% of startups have indicated that they intend to recruit more junior-level employees, while 27.27% of respondents are planning to focus on mid-level hiring. However, the agri/agritech and automotive sectors will focus more on senior level C-suite hiring. The survey further indicates that 54.38% of startups attribute the high attrition rate in the industry to factors such as better pay packages offered by larger corporations, as well as concerns over job security in a startup. Other factors contributing to attrition in startups include a lack of clarity around career progression and credibility.
"Startups create a large range of jobs as they grow and mature. As this report highlights, the initial opportunities arise as founders onboard the early team to help establish the business. The dynamic working environment in startups provides the ideal training ground for aspiring entrepreneurs who then move on to create their own startups. This creates a virtuous cycle of growth, with each successive cohort adding jobs and enterprises. With their pan-India footprint, startups create jobs and economic opportunities beyond just the top cities and are key partners in India's growth story," said Rohit Bansal, chairman - FICCI Startup Committee, and co-founder, AceVector Group and Titan Capital.
Established in 1927, FICCI is the largest and oldest apex business organisation in India. Its history is closely interwoven with India's struggle for independence, its industrialization, and its emergence as one of the most rapidly growing global economies, whereas Randstad India offers the broadest HR services portfolio ranging from staffing, permanent hiring and executive search to recruitment process outsourcing (RPO).
In this context, Nirvan Birla, founder Birla Brainiacs responded that, "Amidst the ever-changing landscape of entrepreneurship and innovation, it is inspiring to see that 80% of early-stage startups are looking to increase their workforce in 2023. As these startups continue to scale and expand, they have the power to create new opportunities for individuals and communities alike. From entry-level positions to executive roles, the potential for career growth and advancement is vast. As we look towards the future, the potential impact of these early-stage startups on our workforce and economy is immense. It is up to us to ensure that this growth is not only sustainable but also equitable and inclusive for all."
Founder and CEO of Uplers, a leading tech talent matchmaking firm, Jaymin Bhuptani, also opined that, "Top Indian tech talent have many choices today. They are not limited to local Indian companies. Global companies are now hiring Indian tech talent by offering remote job opportunities. Whether its hot startups or mature organizations, companies globally are looking to tap into India's tech talent pool to build scalable and distributed teams. Top Indian tech talent is looking for amazing projects, flexibility and fair compensation. They will choose organizations that deliver on this, irrespective of the company's location."