Startups in India are grappling with the challenge of hiring executives and retaining talents even after securing hefty initial funding from renowned VCs.
The primary reason being touted for this challenge is that professionals are sceptical regarding long term prospects with startups.
The recruitment of technical and R&D professionals come as the most stringent task for startups, says renowned VC Accel Partners in its recent report. The second biggest challenge as per the report rests in the domains of marketing and product management.
The report by the name, Startup Pulse 2019 says that a majority of the startups find hiring for operations and other designations comparatively easier.
“When you hire for a young company, you are pitching as much as the interviewee, and the first question asked is — are you funded? If yes, how much,” claims a founder of a B2B startup who secured $1 million.
“Sometimes having a marquee investor name helps, but most times it is the amount of money raised that matters,’’ he added.
Another concern for the founders of these startups is the large paycheque which some well-funded startups offer to skilled talents and matching their offerings becomes a tough nut to crack.
“An in-demand product manager would get a 3-4 times higher package at companies like Ola, Swiggy, Flipkart and Amazon today. Why would they join someone early,” says the founder of a startup in its initial phase.
. “I find doers who can execute and not think of them long-term, because at early-stage experimentation is key. Over time, as I scale, that’s when I will hire seasoned executives,’’ he adds.
“Employee stocks don’t matter to most people I interview. The deciding criterion is always cash in hand. This is also because most startups haven’t held up their end of the bargain of providing employees liquidity barring a few unicorns. Now ESOPs are good to have, not a must-have,” says another entrepreneur.
