According to a research published on Thursday, hiring for senior roles at Indian startups (with CTCs of more than 50 lakh per year) declined by around 80% across new-age tech platforms in the first quarter of 2023 in comparison to the same time in 2018. In the midst of a funding crisis, this continued a trend of decreased hiring.
LONGHOUSE Consulting is a specialised executive search and advisory organisation that has a thorough awareness of the talent landscape in the rapidly expanding digital industry, emerging technologies, and the consumer internet domain. We are aware of the need for people that can deliver today while also being FUTURE-READY in the current unpredictable environment. Since the early stages of these late-stage ventures, we have been proud PARTNERS in their leadership and have assisted them in hiring talent.
The hiring rates for the e-commerce and edtech sectors fell by 93% and 844%, respectively, according to a survey by LONGHOUSE Consulting, an organisation that provides executive search and recruitment guidance.
The startup ecosystem’s hiring climate from the first quarter will persist for the next two quarters as well, according to the statement. There will be a steady erosion of senior jobs with high-paying occupations, predicts Anshuman Das, CEO and Founder of LONGHOUSE Consulting.
Growth stage and late-stage start-ups will continue to suffer tremendously even though it is projected that early-stage and Pre-Series A start-ups will hire.
Early-stage startups in the manufacturing, healthcare, AI/ML, fintech, and EV sectors are expected to accelerate hiring, with a few senior posts still open, he added.
However, there will be a rise in more seasoned business owners who are launching their second or third ventures as well as seasoned executives who are transitioning to entrepreneurship, which will benefit the startup ecosystem.
Das anticipated that the current start-up recession will actually promote entrepreneurship rather than harm it.
Indian startups raised a total of $2.8 billion in funding in the first quarter of 2023, a severe fall of 75% from the same time the previous year ($11.9 billion), as rising costs and interest rates continue to have a significant impact on investments in the midst of a deteriorating financial winter.
According to a recent report by Tracxn, a prominent global market intelligence platform, there were no new unicorns produced between January and March in contrast to the 14 unicorns that were produced in Q1 2022.
a number of tech organisations, the ecommerce and edtech industries have been hit the hardest, with a 93% and an 84% reduction in senior hiring, respectively.
With regard to a poll, senior job hiring in new-age IT organisations decreased by 80% in the first quarter of 2023 compared to the same period in the prior year.
In a recent report, executive search and talent advisory firm LONGHOUSE Consulting found that hiring for senior leadership positions among Indian startups in Q1-CY 2023 was significantly impacted by the ecommerce and edtech sectors, with hiring falling by 93% and 844%, respectively, continuing the trend of declining hiring.
Anshuman Das, CEO and Founder of LONGHOUSE Consulting, predicts that the employment climate within the startup ecosystem will remain similar to the first quarter throughout the course of the next two quarters.
Senior positions paying well will keep disappearing. Growth stage and late-stage start-ups will continue to suffer tremendously even though it is projected that early-stage and Pre-Series A start-ups will hire. Despite of a few senior roles remaining open, the executive noted that it is predicted that early-stage start-ups in the manufacturing, EV, healthcare, AI or ML, Fintech, and sector A and B would hire more individuals.
A large number of more seasoned entrepreneurs will also launch their second or third enterprises, as well as a significant number of seasoned executives will make the switch to entrepreneurship, according to Das, despite the current start-up slump.
The research was based on newly created senior roles (CTC more than 50 LPA) that LONGHOUSE Consulting received and followed from January through March of 2022 and 2023.
