FICCI-Randstad survey: 80% of Early-Stage Startups to Expand Workforce in 2023
- ByStartupStory | March 29, 2023
As per the survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Randstad India, nearly 80% of early-stage startups are planning to augment their workforce in 2023, despite widespread tech layoffs. The study encompassed over 300 startups.
The FICCI-Randstad Startup Hiring Trends survey revealed that a mere 15.78% of startups, mostly at the early stage, plan to retain their current workforce. The majority of startups intend to bolster their headcount in 2023. More than half of the participating startups identified high attrition rates as a major concern, citing reasons such as superior compensation offered by larger corporations and worries about job security. Sectors such as healthcare (13%), IT/ITes (10%), agri/agritech (8%), AI/ML/DeepTech (7%), fintech (7%), and manufacturing (7%) have the strongest inclination to hire. The study also highlighted Hyderabad and Pune as emerging areas displaying a robust intent to recruit senior-level employees.
According to a recent study, approximately 92% of startups will base their hiring decisions on new project orders, increased funding from investors, and expansion plans. Furthermore, over a third of startups are projecting an increase in hiring by more than 30%, with a primary focus on junior and mid-level positions. According to a survey conducted by Randstad in partnership with FICCI, a majority of startups believe that ESOPs (Employee Stock Option Pool) can be an effective tool for retaining employees, with over 40% of startups surveyed already implementing this strategy. Randstad India’s Managing Director and CEO, Viswanath PS, views the strong hiring intentions of early-stage startups as a testament to the availability and strength of India’s diverse talent pool in the current job market.
Rohit Bansal, the Chairman of FICCI Start-up Committee and Co-founder of AceVector Group & Titan Capital, highlighted the role of startups in creating job opportunities and driving economic growth across India. As per the survey results, half of the startups are seeking permanent employees, while for campus placements, most startups are targeting private MBA and engineering colleges as well as state universities, as these institutions provide skilled talent at reasonable salary packages.
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