Candidates covet job stability amid layoffs

Following the 2022 liquidity squeeze, startups were forced to cut over 25,000 jobs to safeguard their financial lifelines, displacing talent—from engineers to sales executives—who are now seeking refuge in traditional firms or profitable startups that make efforts to retain employees.

Physicswallah, Scaler, Wakefit, Upstox, Swiggy, Infra.Market, Mamaearth, Lenskart and Firstcry are among firms seeing a surge in applications. “We saw a significant surge in the number of resumes we receive, reflecting a diverse mix of candidates from different professional backgrounds. We have noticed a dual trend in this influx, stemming from both startups that evoke a sense of uncertainty or instability, and those that have unfortunately ceased operations. This blend of applicants represents the current state of the job market in the startup ecosystem," said Wakefit.co co-founder and director Chaitanya Ramalingegowda.

Wakefit is a new-age furniture and home solutions company, which is looking to turn profitable by the end of this financial year. It had raised capital earlier this year and made sure to retain its employees. Startups witnessing steady growth are increasingly being seen by jobseekers as an opportunity to secure their professional future.

Human resources (HR) teams are seeing a steep rise in the ratio of job postings and applications. However, preferences of the current talent pool have changed drastically—they want nothing but stability.

Most job applicants are now choosing to work only with startups that are on road to sustainability and profitability, and just not seeing radical growth, said Sai Gopal, partner, engineering and digital, Native, an executive search firm. “Well-capitalized firms led by a good team of founders and investors, a great product fit and a good runway are the most favoured now," Gopal added.

For each open position, the number of resumes has gone up significantly, and the big hikes of 50% are down to 15-30%, said Ankit Agarwala, managing director, Michael Page India, a jobs and recruitment agency.

According to Michael Page’s data, India saw an increase in CTO hiring in the technology sector, and the number of global capability centres (GCCs) has exceeded 1,200. Indian startups have also raised $3 billion in the first quarter of 2023, it said.

Earlier if 30-40 people would apply for a role, it has now gone up to 100-150, various estimates showed. This is a classic case of the law of averages catching up and is in the long-term interest of the ecosystem, Ravi Kumar, co-founder and chief executive of discount broking company Upstox said. “Talent is naturally drawn to profitable startups, enticed by opportunities for growth, learning and success. In the previous quarter, we added over 40 employees. Currently, we have 20 open positions, comprising engineers, product managers, designers, growth and brand marketers."

The uncertainty and mass layoffs led to lower or steady talent replacement costs, said Aditya Narayan Mishra, chief executive, CIEL HR Services. “18-24 months ago if one had to fill a vacant position, it would lead to 70-100% rise in compensation. Now, it is down to 30% in startups, and employee costs are coming down."

In technology, marketing, and product-oriented roles, candidates were once accustomed to anticipating substantial increments ranging from 30 to 50%. While the technology skills are still in a relatively high demand state, other departments have experienced a reasonable reduction in these salary expectations. Nowadays, the candidates are open to considering increments in the range of 15 to 20%," Ramalingegowda added.