Better salary, Bigger brands, job security and unclear growth: Mid and senior level hiring is a time consuming task
50% entrepreneurs feel that availability of talent; market conduciveness and cost of setting up operations are the key aspect for deciding on location
Athena, a Gurgaon based Executive Search and Consulting Company recently released a survey titled, “Startups – The changing Trends” which highlights the potential threats and the risks involved in setting and scaling up ventures in this evolving startup scenario. Athena interviewed over 250 entrepreneurs across sectors and the findings are based on the data collected through surveys and interactions with the Founders and Co Founders, leading these ventures.
According to the survey, finding the right talent is the major challenge faced by any startup organization. “To succeed, it is imperative to attract the best talent at an early stage, as the selection of each member adds in organization’s growth”, said, Mr. Bhavishya Sharma, Managing Director of Athena Executive Search & Consulting. India is witnessing a boom in the startup industry, and the present talent pool available is excited to join the startup bandwagon, that said, still 61.1% of startups feel that embracing the startup culture is the biggest issue even after finding the right hire. This challenge is followed by ensuring whether the right talent has the right skills. Around 44.4% of startups face this problem, along with stability concerns and budget constraints amounting to 38.9% and 27.8% respectively.
The findings further stated, that ‘people cost’ takes precedence and eats up to 66.7% of the cost incurred by any startup. “People, are the assets of any company. For a startup they (people) act as directors, leaders, employees, managers, strategic thinkers, basically everything that a startup needs. No wonder, the cost incurred on getting the right people on aboard is so high”, added Mr. Sharma. Once this is sorted, the company focuses on strategic initiatives and technology infrastructure. They account for nearly 16.7% and 14.7% of the expenses incurred.
Another challenge which keeps startups on their toes is to find the talent with the desired skills for the middle and senior level management. “It is comparatively much easier to find managers at the junior level, but it is very time consuming and crucial when the hunt is on for the middle and senior level management. Startups literally crave for quality Midlevel and Senior Level employees because most of them are lured by MNCs, who offers them better salary standards, the tag of bigger brand and job security. Furthermore professional growth is fuzzier in startup organizations. However, almost 55% organizations witnessed candidates changing jobs to work with startups. Regardless of the risk involved, professionals are eying startups for better career opportunities”, added Mr. Bhavishya Sharma, Managing Director of Athena Executive Search & Consulting.
The findings showcased that 38.9% and 27.8% startups feel hiring at Middle Level and Senior Level respectively is a critical and time consuming task.
As reported by the research study, funding, competition and poor business planning are the other threats that are involved in scaling up new ventures. The report suggested that the predominant factor which motivates people to set up a venture is their desire to be an entrepreneur. Digital and Mobile Industry related enterprises comprises 44.4% of the total startup ventures and most of the new enterprises are coming up in Bangaluru and Delhi NCR. One of the key trends followed by Startups is that they are starting to trust Executive Search Firms to address their hiring needs owing to Professional & Specialized Processes and Dedicated Efforts, the report says.