Amid layoffs and slow hiring, startups see 20% increase in employee recruitment
Amid a period of slowdown, layoffs, and an impending hiring freeze among big tech companies, there has been a significant increase of 20 per cent in professionals opting to join startups for new employment opportunities, reveals data from human resources services firm Spectrum Talent Management.
Compared to previous trends, the overall employable market stands higher at this juncture, mainly because of initiatives in non-tech sectors like auto and manufacturing as well as recent job cuts in specific sectors led by IT. As a result, there has been a significant rise of approximately 30 per cent in inquiries from professionals who have been laid off and are seeking alternative employment.
Although there has been an above-average number of professionals seeking employment at startups, this trend may not be a long-term solution. Laid-off employees often turn to the startup ecosystem as a temporary - and sometimes, desperate - measure until the job market recuperates.
A considerable part of the laid-off employees, about 10 per cent, is also considering starting their own ventures. These trends are expected to persist until the tech industry stabilises and starts to return to its typical high trajectory.
Non-tech industries aren't far behind in tech hiring to assist their expansion plans via captives and GICs, the job demand across other industries, mainly in auto, BFSI, engineering, and manufacturing, and certain consumer business setups as well.
The hiring traction will show various cycles depending on the upcoming two quarters. So far the tech hiring in non-tech sectors has gone up by 30 per cent and is likely to grow two-fold in the next two quarters till the tech industry recovers.
Vidur Gupta, Director & Co–Founder, of Spectrum Talent Management, said the whispers of funding winters and the slow economy are bound to impact businesses at large.
“While big tech companies are slowing down on their hiring, startups are suddenly emerging as a viable source of employment for many professionals. What we are witnessing is a state of equilibrium. The intent to hire is expected to be higher this year, but the success in matching the demand depends on overall market health. It's better to be a bit cautious at the moment and adapt as per the market in the coming months,” he added.