Mid- and senior-level employees at startups are lured by MNCs with better salaries, bigger brand tags and job security.
Finding the right talent is still a major concern for most startups. And even if they do find them, embracing the startup culture is the biggest issue for the selected candidates. Around 61 per cent of the respondents from start-up companies who participated in a survey by Athena, an executive search and consulting company, concur with this statement.
Around 44.4 per cent of the respondents are of the opinion that ensuring whether the right talent has the right skills is also a major challenge for startups. Close to 39 per cent of the respondents see stability concerns of prospective candidates as one the biggest deterrents to join a startup while close to 28 per cent of respondents feel budget constraints sway away right talent from startups.
The study further reveals that ‘people cost’ takes away a majority of the budget for a startup and on an average the figure stands at 67 per cent. For a start-up, the people act as directors, leaders, employees, managers, strategic thinkers—basically everything that a startup needs.
Only once the people front is sorted, can the company focus on strategic initiatives and technology infrastructure. And these two account for nearly 16.7 per cent and 14.7 per cent of the expenses incurred, respectively.
Startups, which participated in the survey stated that finding senior- and middle-level managers was a bigger challenge than finding junior-level managers. The reason being that mid- and senior- level employees are lured by MNCs with better salaries, bigger brand tags and job security. In addition, mid- and senior-level managers feel that professional growth is fuzzier in start-up organisations.
However, the encouraging fact is that almost 55 per cent of the startups witnessed candidates changing jobs to work with them. Regardless of the risk involved, professionals are eying startups for better career opportunities.