A significant percentage of early-stage startups are looking to increase their workforce this year, primarily driven by new project orders, additional funding raised from investors and expansion strategies, says a survey.
According to the FICCI – Randstad Startup Hiring Trends Survey, 80.49 per cent of the total startups surveyed stated that they plan to increase their manpower hiring in 2023, while 15.78 per cent plan to maintain their existing headcount, the majority being early-stage.
Over 300 startups participated in the survey.
The survey further indicates that 54.38% of startups attribute the high attrition rate in the industry to factors such as better pay packages offered by larger corporations, as well as concerns over job security in a startup. Other factors contributing to attrition in startups include a lack of clarity around career progression and credibility.
In terms of hiring challenges faced by startups, the primary factors include a deficit in requisite skills, mismatches in salary expectations, and a reluctance among potential candidates to join a startup due to concerns over risk perception.