About 67 per cent of employees working in startups prefer to move to established firms due to job security, better pay and financial stability. This was revealed in a recent study conducted by CIEL HR Services. The study report also said that the startup sector is facing a seriously high attrition rate, with the average tenure being 2-3 years. According to PTI news, some key findings by human resources solutions provider CIEL HR Services indicate that a secure job is on the top of the list of concerns for employees in the startup sector, with 40 per cent of respondents expressing discomfort.
Lack of work-life balance is also a factor
According to the report, 30 percent of the participants commented that the promise of better salary was another factor for moving to established firms, as it ensures financial stability. About 25 percent of the candidates also cited lack of work-life balance in startups as a factor for their decision to join prestigious firms. On the CIEL Works-Startup Report 2024, Aditya Narayan Mishra, Managing Director and CEO, CIEL HR Services, said that startups play a vital role as important catalysts for promoting growth, innovation and creating jobs across diverse sectors.
Future positive for startup ecosystem
With 65 per cent of companies planning to increase hiring in the coming months, the future looks positive for the startup ecosystem, Mishra said. However, he cautioned that startups need to put the employee first and provide a comprehensive value proposition that prioritises employee well-being, career advancement and work-life balance. This will help employees regain their trust in startups and reduce attrition rates.
Study done on data and analysis of 1,30,896 employees
The report is based on data and analysis of 1,30,896 employees across 70 startups in the country. Some of the other key findings include that software development roles were the most in demand, accounting for 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 opportunities for both experienced professionals and newcomers in the startup sector.
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