Hiring Disruption in Startups -
During COVID v/s Post COVID
The report sheds light on the hiring disruption experienced by startups during and after the Covid period. It reveals a significant decline in both job opportunities and salary hikes from FY21 to FY22 to now, primarily attributed to the funding freeze. The data suggest that Indian new-age tech startups have adopted a more cautious approach to hiring, resulting in a reduction of open positions by approximately two-thirds compared to the peak in 2021, when the capital was more readily available.
Analysing data from FY21 and FY22, the report uncovers the current salary landscape for startup employees in 2023. The findings indicate that annual salary increases are now limited to a range of 10% to 15% at best, with some individuals even facing a 10% salary cut. Moreover, bonuses and variable pay-outs have decreased compared to previous years, contributing to this downward trend.
Furthermore, the report highlights that as startups adopt a more conservative approach to hiring, the average hiring cycle has lengthened from six weeks to eight weeks. Late-stage startups have witnessed a significant decline of 75% in the number of open positions compared to pre-Covid levels in 2019, while early-stage companies have experienced a decrease of approximately 55% in available positions.
Subsequently, employees are more inclined to remain with their current employers despite the overall business growth shrinking by around 25% following the Covid pandemic.
Download the report