A study revealed interesting insights, key movements along with emerging trends for 2023 in the start-up space. Offering an insight into the sector’s hiring trends last year, the study stated that hiring among Indian start-ups had been on a steady decline. The hiring experienced a 44% decline in hiring in Q4 compared to Q1 of 2022.
With the sector witnessing turbulent times, attrition continued to be a major roadblock for start-ups. Despite high attrition rates, the average median tenure increased to 1.9 years in start-ups vis-a-vis 1.7 years 6 months back. However, it is still not on par with other sectors like ITES (5.8 years), FMCG (4.1 years), and MSME Manufacturing (3.6 years).
The study further stated that 64% of the respondents (start-up employees) are willing to move to a “stable job”. Amongst these respondents, 47% have stated job security as a concern to move to another job, followed by reasons like no work-life balance (27%) and Better Pay in established firms (26%).
India continues to be the front-runner in the Startup ecosystem despite the current threatening economic uncertainties. This downfall is only for a transient period, it will push the start-ups to be more serious in their overall operations and set new thresholds. In this context, we see startups preferring onsite work, with 94% of job openings looking for ‘work from office’. Startups are on the lookout for highly productive and skilled talent that can adapt quickly to the changes and stay ahead of the curve.
Women’s representation is at 24% amongst start-ups with a negligible 11% representation in leadership positions. Lack of flexibility, shift-away from remote working culture, and inadequate support for childcare and eldercare needs continue to be hindrances for women to sustain and progress in the start-up ecosystem.
Other key findings:-
● Bengaluru continues to remain the hottest destination for start-up talent, with 31% of the job openings in this region. Interestingly, Delhi/ NCR is a very close second with 22% of the total job opportunities.
● Out of the total job openings, Tier 1 Cities account for around 94% of the jobs while Tier 2 and Tier 3 locations account for only 6% of the total job openings.