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 Pages Director Ankit Agarwala said.
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.