Job seekers have become more cautious while considering offers from startups as it presents substantial risk to their long-term goals, according to experts.
“With the premier tech school IIT Bombay blacklisting nine startups, job seekers have become more cautious before accepting offers from them.
“There could be more job seekers declining offers from these companies as they will weigh the substantial risk they need to take while making such career moves as they consider their long-term professional goals,” hiring consultancy
Michael Page’s Director Ankit Agarwala told PTI.
Recently, IIT Bombay had blacklisted nine startups for one year as a penalty for various violations, including revoking offers to some graduates.
Startups are generally hiring cautiously and focusing mainly on critical or essential roles that will directly contribute to the productivity of the organisation, Agarwala said.
“Compared to the previous year, we are seeing tighter control on head count expenditure… there is a strategic move from firms to hire mainly for key roles instead of undergoing large scale expansion,” he added.
It will mean that these startups will need to work harder in attracting talent in order to convince senior and high-potential candidates to come onboard, he said.
Echoing a similar view, TeamLease Assistant Vice President Sudeep Sen said that with time to come, startups will be cautious to hire and the incumbents will be doing deeper scrutiny as well.
“The onus would be on the startups to have a clear business plan, including reliable funding sources, to build the confidence of senior candidates in the business and financial stability of the organisation,” he pointed out.
GlobalHunt Managing Director Sunil Goel said top institutes want to give a very good start to their students, which they think should not be measured only on salary offered but also validity and assurance to honour the offer letter and sustainability of the job.
The IIT-Bombay ban on nine startups would have about 15-20 per cent impact on other premier institutes inviting such companies into their campuses, Sen said.
“Such companies have to pass through acid test of ‘start up employer qualifier’, where valid business plans, long-term stay, return on investment (ROI) and investors, among others, will be scrutinised,” he added.
Moreover, the millennials are still excited about startups as they get multi-activity experience in a very short time, contrary to a structured system at the initial stage of their career, GlobalHunt’s Goel felt.
However, Goel added that good business models with decent and sizeable investment back-ups are likely to attract the pool of best talent available and will continue to grow at 15-20 per cent in coming years.