"An employee mindset in a startup is always like an entrepreneur" Eventually every startup employee aspires to start something of his own!

By Sneha Banerjee

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Entrepreneur India

A question that always props up in a job seeker's mind while joining a startup has to be "job security." While the startup ecosystem has the perks of having flexible working hours and leaner or zero hierarchy, sudden plug on projects and in situations of deals and mergers, one always sees startups layoff a string of employees.

So should a job seeker looking for security not join any traditional startup?

Speaking on employment at startups, FMCG biggie Ullas Kamath, Joint MD and CFO at Jyothy Laboratories, spoke to Entrepreneur India about the generation of job security at startups versus that at FMCGs.

"It's quite natural for layoffs to happen at startups, because the biggest expenditure at startups is employee costs and they depend on funding for employee costs. When funding is coming in, startups are ready to take these costs. Within the organization as well, the mindset of employees is also to build a startup some day. At times employees also don't wish to stay for a longer period at startups as they wish to start something on their own," he said.

Kamath said that difference between a person who wants a secured job is the employee mindset. An employee mindset in a startup is always like an entrepreneur, they know it's not secure, he added.

Maintaining brand status

With the influx of several foreign and local FMCGs in the market, Kamath said that Jyothy Laboratories continues to maintain its customer base, which is middle and lower middle class. "The way we have got it right is by knowing that today's middle class is tomorrow's upper-middle class. We have structured our product portfolio accordingly," he said.

Sneha Banerjee

Entrepreneur Staff

Former Staff, Entrepreneur India

She used to write for Entrepreneur India from Bangalore and other cities in South India. 

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