Hiring talent top challenge for startups in 2022: study

Hiring good talent is the top challenge for startup founders in India and managing talent is their top priority for the next 12 months, according to a latest survey of 100 startup founders by debt fund InnoVen Capital.

The findings of the survey come against the backdrop of startups raising record sums of money in the past year and planning to grow aggressively.

As many as 39% of the respondents listed hiring good talent as their biggest challenge. Regulatory environment and fundraising were top challenges only for 17% and 15% of founders, respectively.

Similarly, 27% said enhancing talent was their top priority over the next 12 months, while fundraising was high up on the minds of 23% of founders.

Three quarters of the respondents expect to step up hiring in 2022 compared to 2021, driven by high growth aspirations and large funding. Within that, 48% expect to hire significantly more than last year. AgriTech, fintech, health tech and D2C firms are the most bullish about hiring.

However, improving gender diversity continues to be a challenge. Only 30% of startups surveyed had more than 20% of women in leadership roles, which is a slight reduction from 33% the year before.

Nearly 54% of companies are working in a work from home or hybrid model, while 46% have gone to work from office model. But there was no consensus on whether COVID has been a positive influence on the culture or not.

Half the founders see a positive impact on productivity and innovation, while the other half believe that work from home (WFH) has led to a lack of teamwork/collaboration and a challenging work-life balance.

The 7th Start-up outlook report was based on a survey of founders and senior leaders and covers a broad cross-section of companies from early-stage, growth stage and late stage.

InnoVen Capital India's transactions include those with Byjus, Swiggy, Infra.Market, Eruditus, Pharmeasy, Shiprocket among others.