Report also revealed that the startup sector has been facing a severe high attrition rate
Chennai: Nearly 67 per cent of employees working in startups prefer to move to established firms on account of job security, better pay, and financial stability, a study conducted by CIEL HR Services said.
The report also revealed that the startup sector has been facing a severe high attrition rate, with an average tenure being 2-3 years.
Some of the key findings undertaken by the city-based human resource solutions provider CIEL HR Services indicate that a secured job ranks high on the list of concerns for employees in the startup sector with 40 per cent of the respondents expressing “unease”.
Similarly, 30 per cent of participants commented that the promise of better pay was another factor in moving towards established firms, as it ensures financial stability.
About 25 per cent of the candidates have also attributed a lack of work-life balance in startups as a factor for their decision to join reputed concerns.
Commenting on the CIEL Works-Startup Report 2024, CIEL HR Services Managing Director and CEO Aditya Narayan Mishra said, “Startups play a vital role as key catalysts for growth, fuelling innovation and generating employment in diverse sectors. With 65 per cent of companies planning to increase hiring in the coming months, the future looks promising for the startup ecosystem.”
Mishra however cautioned that 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,” he added.
The report is based on the data and analysis of 1,30,896 employees across 70 startups in the country.
Some of the other key findings include software development roles were the most in-demand, constituting 18 per cent of the job requirements in the startup sector, followed by sales, pre-sales, retail, and enterprise sales.
The report also indicated that there has been a strong demand for experienced professionals and opportunities for newcomers in the startup sector.
Startups with more employees and good HR practices are implementing various initiatives to overcome high attrition rates like offering attractive compensation packages, adopting remote-first policies, and providing robust employee stock option schemes, among others.
