Start-ups to create 3 lakh new jobs in India by 2020
Start-ups are likely to create as many as three lakh new employment opportunities in the next few years while 80 per cent of job-seekers are opting for such ventures - which are already attracting funds from investors.
According to HR experts, the start-ups employed about 50,000 to 60,000 people in the last year itself and the hiring outlook looks positive across sectors in the near term. Research conducted by HR consultants also showed that a vast majority of up to 80 per cent job aspirants prefer jobs at start-ups, as compared to already established companies.
As per estimates of the talent assessment firm MeritTrac, the start-up ecosystem in India may hire 2.5 -3 lakh employees by 2020. “Indian start up ecosystem is one of the fastest growing in the world. We are witnessing an unprecedented enthusiasm in the industry with respect to hiring for these start ups,” MeritTrac Innovations and New Products Development General Manager Rajeev Menon said.
The firm’s research further showed that over 80 per cent of job seekers are willing to get associated with start-ups. Noting that hiring for start ups was not easy in the past, Menon said: “The situation is much different now. Job seekers are willing to bet their careers with start ups. They see greater opportunities to learn, establish and grow faster in these start ups”. “The firms that have attracted funding are surprisingly much better pay masters in industry and equity that is offered by some start ups adds to the attraction,” Menon added. Echoing sentiments, HR services firm Randstad India CEO Moorthy K Uppaluri said that “in the last two years, we have seen a consistent increase in candidates preferring start-ups over other established firms and this trend is likely to grow”.
Experts have attributed the hiring trend among start ups to positive economic sentiments and increase in interest among venture capitalists to invest in start ups. Data provided by Career Shapers HR Consulting showed that venture capital firms invested about USD 1.06 billion (Rs 6,600 crore) in over 244 startups, during 2014.
“Indian start-ups are not taking baby steps anymore and have sufficient funds to sustain and hire experienced professionals,” Career Shapers HR Consulting Principal Consultant & Director Pankaj Minglani said.