There is a steep rise of 20% of employees taking up jobs in Startups due to layoffs and the impending slow hiring phase
Spectrum Talent Management has recently identified a steep rise of 20% in professionals taking up new employment in Startups after months of slowdown/layoffs and impending hiring freeze amongst big tech companies.
The overall employable market stands higher at this juncture compared to previous trends. This is mainly because of initiatives in non-tech sectors like Auto and Manufacturing and recent layoffs in specific sectors led by IT. There is a surge of about 30% in job enquiries by professionals who are looking for another job after being laid off.
Despite the above-average number, the trend of taking up startup jobs might be short-term. The laid-off employees use the startup ecosystem as ad-hoc (sometimes desperate) measures as an immediate solution until the market recuperates. A considerable part of the laid-off employees, about 10% also plan to start a venture of their own. These trends are expected to stay till the tech industry recovers to its usual business 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 have gone up by 30% and is likely to grow 2x 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”.
Note: This article featuring the comments of Vidur Gupta, Director of Spectrum Talent Management, was originally published in BWpeople.