Anindita Nayak
Bhubaneswar, 30 May
A recent Ciel HR Services survey finds that nearly 67% of startup employees are considering moving to established traditional sector companies owing to prolonged funding challenges, job uncertainty, and widespread layoffs.
The report collected data from 130,896 employees across 70 Indian startups and examines 8,746 job postings from various job portals.
Key findings from the survey highlight that 40% of startup employees are concerned about job security, while 30% are attracted to the better pay offered by established firms, emphasizing the importance of financial stability. Additionally, 25% of respondents cited a lack of work-life balance as a significant factor driving their preference for established companies. The survey also revealed that the startup sector faced high attrition, with an average median tenure of just 2.3 years, significantly lower than other industries.
“In the rapidly evolving environment of India, startups play a vital role as key catalysts for growth, fueling innovation and generating employment in diverse sectors. With 65 percent of companies planning to increase hiring in the coming months, the future looks promising for the startup ecosystem; we expect this ecosystem to revive by the end of this year. However, 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 and CEO of CIEL HR Services.
Software development roles are highly sought-after, comprising 18% of job requirements in startups, followed by various sales positions like pre-sales, retail sales, and enterprise sales. This indicates a demand for skilled professionals to propel both technological and commercial advancement in the sector.
The bulk of job openings (49%) are for mid-senior level positions, with entry-level roles comprising 40%. Director and executive level opportunities are limited at 6%. This distribution highlights a demand for experienced professionals and entry-level opportunities in the startup sector.
There has been a significant 22% rise in startup job listings, correlating with a steady increase in funding activities, particularly in early-stage startups. The report notes that early-stage funding, starting at $151.22 million in January 2023, initially declined but has steadily risen since November 2023, indicating growth and stability in this sector.
