Saturday, December 18, 2010

Indian companies out for hiring top talent 

The young companies, across the country are trying to hire top talent and this competition among them is growing more intense. All this is due to setting up of new businesses by the entrepreneurs. They are in competition with the large business houses and corporations.

The demand from startups has increased to 350-400 this year from 100 people last year. This was told by the head of HR department of a firm that specializes in startup services.  

There is a manifold increase in hiring by startups. The average employee headcount has risen to a median of 20 from one in the current year. 

According to an employability assessment firm based in Gurgaon, less than a fifth of engineering graduates were ready to work in small companies, with only 7.2% actively seeking such a position.

The reasons which make the talented professional stay away from the startup companies are their untested businesses, simple offices, minimal support, modest pay packages and no brand names. To solve all these problems the HR firms are trying to attract the professionals through the social networking sites like Facebook, Twitter and LinkedIn.
The pinch of having almost zero brand names is felt by the startups. There is greater shortage of talented professionals more in technology firms where core team of developers is required for product development.

Another challenge faced by them is retention. They find it difficult to retain the talent for a longer period of time in the wake of huge demand and supply gap.

Employees also prefer to work in startups that are backed by significant risk capital investment by a prominent investor.

In order to lure the talent some internet startups are also ready to pay higher to retain talent.

All this can affect innovation in the startup ecosystem.

Source: Economic Times

No comments: