Nearly 67 percent of startup employees are seeking a transition to established firms, according to the CIEL Works Startup Report 2024.
The report is based on data from 1,30,896 employees across 70 startups in India and 8,746 job postings from various portals.
The findings highlight job security and better pay as the top reasons for this shift.
Around 67 percent of the surveyed workforce are open to moving to more established companies.
Job security emerged as a significant concern, with 40 percent of respondents indicating unease about their current roles in startups.
Additionally, 30 percent are attracted to the higher salaries typically offered by established firms.
Nearly 25 percent of participants cited a lack of work-life balance as another key factor driving their interest in larger companies.
The report also noted that employee turnover remains a challenge in the startup sector, with an average median tenure of just 2.3 years, significantly lower than in other industries.
This high attrition rate highlights the need for startups to focus on employee retention by offering comprehensive value propositions emphasizing well-being, career advancement, and work-life balance.
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Aditya Narayan Mishra, Managing Director and CEO of CIEL HR Services, said: “In the rapidly evolving environment of India, startups play a vital role as key catalysts for growth, fuelling innovation and generating employment in diverse sectors.
“With 65 per cent of companies planning to increase hiring in the coming months, the future looks promising for the start-up ecosystem, we expect this ecosystem to revive by the end of this year.”
However, he stressed the importance of prioritizing employee retention to restore confidence and reduce attrition.
Software development roles are currently the most in-demand, making up 18 percent of job requirements in the startup sector.
This is closely followed by sales roles, including pre-sales, retail sales, and enterprise sales, reflecting the need for skilled professionals to drive technological and commercial growth.
