Since the onset of the pandemic the world as we know it has changed drastically with the Great Resignation manifesting its presence and employees quitting their jobs to go in search of ‘better’ ones that allow them the flexibility, safety and security they need. Employees today say it is not only about the money. These mid-level and junior employees are looking at the bigger picture and hoping to find positions that offer them a good work-life balance, mental wellbeing and the ability to work from anywhere whether it is with an established organization or a startup. In fact, startup hiring in the pandemic has been quite phenomenal.
Coffeemug.ai, throughout the pandemic and post it, has successfully managed to support a number of startups through multiple rounds of funding, adding significant value at each stage. Besides helping members onboard explore innovative business opportunities, the company provides 1:1 mentoring for entrepreneurs and assists with the generation of investment for startups.
Startup hiring during and post pandemic: Post the first and second waves of the pandemic the number of startups increased due to a large number of employees finding themselves jobless and unable to find jobs as companies were cutting costs and working with skeleton teams. The number of startup jobs exploded and startup companies suddenly became serious contenders for recruitment. These startups emerged as key drivers of economic growth and job creation and often a catalyst for radical innovation. Between September 2020 and December 2021, startup hiring was resilient and indicated that more and more people were willing to risk the startup bandwagon and seek employment. In 2020 alone, startup hiring went up by 20% from 2019 and in 2021, the trend continued to increase.
In order to understand post pandemic hiring for startups it is a good idea to understand the reasons why these small companies were able to make a considerable difference and alter the dynamics of the hiring game.
- In India the SME sector continued to recover and hire more employees especially in IT, Sales Marketing and blue collared jobs.
- With the cost cutting of the big names in the industry, a surplus workforce was suddenly available and within reach for those startups that could afford to on-board the best talent provided they could lure them away from other bigger firms that were also in the same hiring pool making it a tough competition.
- The flexibility provided by startups; remote jobs became more accessible and hiring became borderless. People were open to remote working since it often allowed for a healthy work-life balance.
- Smaller startups were quicker to adapt to remote working and the changing landscape and hence they survived the pandemic better.
- Startups provided the satisfaction of working for oneself and as a result the dedication and passion with which startup owners worked proved to be fruitful in a number of cases. They invested in the best talent, made careful and well thought out business decisions and ensured they had a solid business plan coupled with investment or funding.
- Many startups envisioned the fact that innovation would attract the best talent since a lot of professionals want to work in an atmosphere that is highly challenging and provides the opportunity to work on cutting-edge projects.
Post pandemic startup hiring continues to be on a roll. Now that we seem to be easing out of the pandemic (hopefully), the trend of post pandemic startup hiring continues. Employees who were laid off during the pandemic by the big organizations who found jobs with startups or founded their own startups during the pandemic are now benefiting from this move. They have job security since their startups have survived the black period during the pandemic, they reap the profits since they work for themselves and they are in a position to give back to society by helping others with employment and hiring the best talent though this has proven to be more difficult since they are being wooed by a larger number of SMEs that have all sprung up during the pandemic.
On the downside, higher paid and more experienced professionals in the higher income bracket were averse to taking up startup jobs and broadened their search parameters. Since remote working has made hiring boundaryless, a lot of talent has widened their job search. They also became less choosy as they were more open to part-time jobs and internships, lower salaries and a wider variety of jobs, markets and locations. This flight to safety could have impacted the quantity and quality of talent available to startups in India.
At a time marked by significant economic uncertainty, and with their finances in fragile condition, many startups didn’t make it through the pandemic. On the flip side, for those who did, the challenge of competing with numerous other startups is something that they must continue to contend with. As the uncertainty of the pandemic continues to loom in the background, most of the sectors have indicated intent to invest in manpower acquisition indicating that they have bounced back but it is still too early to say how long it will be before startups, in particular, can reach pre-covid levels.
Conclusion
Adapting to the new normal might be difficult, but it can be made easier with the support of seasoned industry specialists. Connect with the Coffeemug.ai community for expert advice on hiring the right talent for your startup’s long-term success.
FAQs
Q. How do startups hire employees?
A. Networking outside of the office is a good way to hire employees. Referrals from friends and coworkers is also an alternative option for finding the right talent.
Q. When should I hire my startup employees?
A. When you have a steady process and need a specified role that has to be filled, entails hiring talents. Because, if there is a lack of process the employee might get bored and might leave the job.
Q. What is hire cost?
A. The cost per hire is a recruitment metric that divides the total amount of money spent by the number of people hired. The cost per hire is a measure that considers a variety of factors such as advertising, software, and relocation charges, among others.
Q. How many employees should a startup have?
A. As per the general rule of thumb, the minimum number of employees at each stage is 5 employees in the product stage, 10 employees in the development stage and 25 employees in the production stage.
