About 80% of early-stage startups to increase workforce in 2023: FICCI-Randstad survey

Over half of the startups surveyed attribute the high attrition rate to factors such as better pay packages offered by larger corporations, as well as concerns over job security in a startup.

Prachi Verma
  • Updated On Mar 29, 2023 at 12:43 PM IST

Despite the rampant tech layoffs, startups are on a hiring spree. Almost 80% of early-stage startups are looking to increase their workforce in 2023, according to the findings of the Federation of Indian Chambers of Commerce and Industry (FICCI) and Randstad India’s survey. Over 300 startups participated in the survey.

According to the FICCI-Randstad Startup Hiring Trends survey, only 15.78% plan to maintain their existing headcount, majority being early stage. Over half of the startups surveyed attribute the high attrition rate to factors such as better pay packages offered by larger corporations, as well as concerns about job security in a startup.

Advt
Overall, sectors depicting the highest intent to hire include healthcare (13%), IT/ITes (10%), agri/agritech (8%), AI/ML/DeepTech (7%), fintech (7%) and manufacturing (7%). Hyderabad and Pune are emerging as regions exhibiting strong intent to hire for senior-level positions.

About 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.

While startups are planning to expand their workforce, a substantial portion, over a third of startups anticipate an increase in hiring by over 30%.

The study also states that hiring will primarily occur at the junior and mid-levels.

A majority of startups surveyed believe that ESOPs (Employee Stock Option Pool) have the potential to serve as an effective instrument for retaining employees. Over 40% of surveyed startups have already implemented ESOPs as a retention strategy.

“Randstad’s exclusive survey in association with FICCI reveals that the majority of early-stage startups are exhibiting strong hiring intentions, which is a testament to the strength of India’s diverse talent pool that’s available in the job market today,” Viswanath PS, managing director & CEO, Randstad India said.

Advt
“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,” Rohit Bansal, Chairman - FICCI Start-up Committee, and Co-founder, AceVector Group & Titan Capital said.

One in two startups are looking for permanent recruits. In terms of campus placements, a majority of startups are focusing on private MBA and engineering colleges, as well as state universities, as these institutes offer quality talent at affordable salary packages, according to the survey findings.

  • Published On Mar 29, 2023 at 12:42 PM IST
Be the first one to comment.
Comment Now

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETCFO App

  • Get Realtime updates
  • Save your favourite articles
Scan to download App