Report reveals 67% start-up employees prefer to move to established firms

The report also indicated that there has been a strong demand for experienced professionals and opportunities for newcomers in the start-up sector
The study was conducted by recruitment agency CIEL HR Services
The study was conducted by recruitment agency CIEL HR Services(Pic: EdexLive Desk)

Nearly 67 per cent of employees working in start-ups prefer to move to established firms on account of job security, better pay, and financial stability, a study conducted by recruitment agency CIEL HR Services said.

The report also revealed that the start-up sector has been facing a severe high attrition rate, with an average tenure being two to three years.

A few 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 start-up 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 start-ups 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, "Start-ups 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 start-ups 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 start-ups in the country.

Other key findings

A few of the other key findings include software development roles were the most in-demand, constituting 18 per cent of the job requirements in the start-up 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 start-up sector.

Start-ups 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.

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