Amidst the ever-changing landscape of 2023, the Indian startup ecosystem experienced significant upheaval and evolution. Startups were actively involved in integrating new technologies, adjusting to updated regulations, and innovating their business strategies to stay efficient and competitive. Faced with these hurdles, companies displayed strategic agility by cutting costs and reallocating resources to key business areas. Simultaneously, many firms strategically bolstered their teams through focused hiring, showcasing resilience in the face of adversity.
The shifting industry dynamics and workforce strategies are revealed through the sectoral movements observed by RazorpayX Payroll, the business banking platform of Razorpay. Analysing payroll data from April to December 2023, encompassing over 30,000 employees across 20+ sectors, the platform sheds light on notable transformations within the organisational landscape. Insights include the rising adoption of outsourcing firms, alterations in salary distributions and hiring patterns, as well as department-wise demand trends over the past nine months.
Key insights include:
– Rising demand for outsourcing firms
Amidst a slowdown in full-time hiring, the need for outsourcing companies surged, with a 26.77% increase in inflow. This trend spans various departments, including technology, sales & marketing, and logistics & operations, indicating startups’ pivot towards specialised outsourcing firms. However, individual contract workers saw only a marginal 0.22% salary uptick, contrasting with the broader outsourcing trend.
– Incremental growth: Full-time female employees’ salaries
Over the past 9 months, total salary disbursed has grown by 8.22%, with full-timers seeing a 6.69% uptick in average salary. Notably, female employees experienced a 9.13% increase compared to 8.87% for males, showcasing progress towards workplace gender pay equity.
– Shift in recruitment trends: Full-time and CXO hires on the decline
Over the observed period, full-time employee hiring dropped by 17.23%, with CXO hires experiencing a steeper decline of 25%. Additionally, recruitment for senior executive roles saw a notable decrease of 37.63%, indicating shifting dynamics in hiring practices.