A prolonged funding winter, job uncertainty and a flurry of layoffs is prompting startup employees to look for opportunities in established traditional sector companies, according to the findings of a recent survey by executive search firm Ciel HR Services.
Nearly 67% of the surveyed workforce is open to transition to established firms, according to the findings of the survey on hiring and recruitment trends in the sector.
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The report is based on the data and analysis of 130,896 employees across 70 startups in India, along with 8746 job postings sourced from various job portals.
The survey indicates that job security ranks high on the list of concerns for employees in the startup sector, with a significant 40% of the respondents expressing unease about this aspect within startup roles.
Moreover, 30% 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% of participants mentioned a lack of work-life balance as a significant factor influencing their inclination towards established companies.
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The survey also revealed that attrition continues to be a challenge for the sector marked by an average median tenure of 2.3 years, considerably lower than other industries.
“In the rapidly evolving environment of India, startups play a vital role as key catalysts for growth, fuelling innovation and generating employment in diverse sectors. 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,” said Aditya Narayan Mishra, managing director & CEO – CIEL HR Services.
The survey also shows that 65% of the startups plan to ramp up hiring in the next six months.
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.
The report also shows that the most in-demand roles are for software development, constituting 18% 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.
Most 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%.