A recent survey conducted on the hiring and recruitment trends in the start-up sector by CIEL HR Services' revealed that nearly 67 per cent of the work force is open to transitioning to established firms. The report is based on the data and analysis of 130,896 employees across 70 start-ups in India, along with 8746 job postings sourced from various job portals.
Key findings from the survey indicate that job security ranks high on the list of concerns for employees in the start-up sector, with a significant 40 per cent of the respondents expressing unease about this aspect within start-up roles. Moreover, 30 per cent of respondents are lured by the promise of better pay offered by established firms, underscoring 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.
Aditya Narayan Mishra, Managing Director and CEO of CIEL HR Services, said, “In the rapidly evolving environment of India, start-ups play a vital role as key catalysts for growth, fueling innovation, and generating employment in diverse sectors. With 65 per cent of companies planning to increase hiring in the coming months, the future looks promising for the start-up ecosystem; we expect this ecosystem to revive by the end of this year.”
He further added that start-ups need to prioritize employee retention and provide comprehensive value propositions that prioritize employee well-being, career advancement, and work-life balance. This will help employees regain their confidence in start-ups and reduce attrition.”
The report also 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 start-ups.
Additionally, software development roles are the most in-demand in the start-up sector, making up 18 per cent of job requirements, followed closely by various sales roles. Start-ups with more employees and strong HR practices are addressing high attrition rates by offering attractive compensation packages, prioritising employee well-being, adopting remote-first policies, and providing robust employee stock option plans.
