The sense of ownership lacking in large companies due to hierarchies and the tremendous decision-making opportunities have led to the best and brightest of India Inc’s talent bailing out of their high-paying, prestigious jobs with big corporates to join startups or set up their own business. A recent study by TimesJobs.com revealed that 40 per cent of India Inc. lost top talent to startups. The IT/Telecom sector has witnessed the maximum (40 per cent) talent movement to startups followed by ITeS, retail, manufacturing and engineering sectors.
The freedom to innovate and positions/designations are pointed out as the key factors luring top talent to startups, by nearly 60 per cent of the respondents to the TimesJobs.com survey.
The attraction of having a position of power and of being in a leadership role is the maximum at the middle level. 65 per cent organisations said that maximum talent movement is at the middle level and 55 per cent of middle level managers are attracted by the designations offered. The experience range of these high-value job-hoppers lies between five to 10 years, said 48 per cent of the surveyed. The fact that middle level employees are getting to exercise leadership positions at startups is the biggest factor driving them to leave reputed and established organisations.
“A major reason for this exodus of talent is that in a big company mid-managers can take almost 10-15 years to reach leadership positions, while startups offer them a head start at the power and opportunities that leadership provide at a much earlier stage in their careers,” said Vivek Madhukar, COO, TimesJobs.com.
It reveals that over 60 per cent candidates with two to five years’ experience move to startups to explore their creative side and about 67 per cent of the candidates with five to 10 years experience join startups for better positions and designations.
Startups for Gen Y
“While money may not be the biggest attraction in startup organisations, they are cashing in on the concept of the ‘new work world’, which offers freedom to innovate, flexibility and leadership positions to lure Gen Y workforce out of their big corporate jobs. The fact that Gen Y is restless and seeks instant gratification, interesting work and quick results — startups are the place where they are getting what they want,” explained Madhukar.
Startup gives the opportunity to develop multiple skills, as one is expected to take on multiple roles. There is higher growth opportunity and a faster learning curve with first-hand experience of working with top management.
Sunil Goel, MD GlobalHunt, said, “Startups have minimum liabilities and so they experiment and innovate with one specific area. Top talent have risk abilities and willingness to work all around the functions, hence they want to join the startups.”
As far as designations are concerned, he added, that while in established companies there is a huge pool of people and so the hierarchy has to be maintained to make sure that new entrants are clear about their role, work areas and KRAs. While in startups, the resource pool is limited and it doesn’t matter as to what designation is offered. One grows with the organization; hence, there is higher opportunity to earn better remuneration, added perks and profit sharing.
According to Aditya Narayan Mishra, President Staffing, Director marketing, Randstad India, professionals today have become more optimistic about the future of the country, its economy and the markets. Hence, they are no more risk-averse. Also, with many startup success stories doing the rounds and world-figures espousing the concept of entrepreneurship, the workforce is getting lured.
However, working for a startup is surely not a cake-walk. There are several shortcomings due to the work culture being less organised with the company at an evolution stage, hence, systems and processes are not refined. This leads to confusion and trouble in communication, especially for new joiners who are not accustomed to the corporate atmosphere. The employees are also not able to leverage the brand equity if it does not do well in the long run. But these disadvantages seem to be minimal when there is flexibility and freedom to think out of the box and ample opportunities to innovate.