The Startup Bubble is Bursting, and It's Taking India's Future with It
The Indian startup ecosystem is in a state of crisis. In recent years, salaries for tech workers have skyrocketed, making it difficult for small and medium-sized businesses to compete. As a result, many businesses are being forced to lay off workers, and the unemployment rate among young people is skyrocketing.
The situation is only going to get worse. A recent study by NASSCOM found that the average salary for a software engineer in India is expected to increase by 20% in the next five years. This means that small businesses will be even more squeezed, and the unemployment rate will continue to rise.
As a non-funded startup in the Healthcare EdTech sector, we at Medvarsity have been looking at bringing in key talent across almost all functions. And while I and my team meet some exceptional talent or review some truly interesting resumes, we have to drop most of them due to the last salary drawn and expected increment in the new role.
Some of you will argue that for the right talent, cost shouldn't be a limitation. Yes, that would be true if the business had endless money and no interest in being profitable. For revenue driven organisations, we know that any talent brought in, will take time to deliver. The more senior the talent, the higher the investment in them, their teams and the changes that they need to make/drive. Therefore staying within budget is one of the most critical rules for continued growth.
领英推荐
One of the consequences of the salary bubble is we're now actively growing talent from within. We're also looking for younger talent, without some of the experience that a more senior candidate would have brought in, but we're willing to invest in this emerging talent and help them grow with us.
The startup bubble is bursting, and it's taking India's future with it. I'm actually worried about the large number of middle aged startup executives who've built expensive lifestyles and are now looking at a significant haircut, just to stay afloat. How prepared are we for a 30% haircut? How about 50%?
What advice do you have for someone who's been riding the gravy train and the line is coming to an end rapidly?
More Sales. It's a Done Deal. Providing sales consultancy, sales training and sales directorship.
1 年Enjoyed the article. Salary is by far the most complex topic for corporations to manage. It's both a source of frustration but also of joy and happiness. Being a manager doesn’t entitle anyone to earn more money, and this is something that many don’t realize.? My advice for individuals: The best way to grow your compensation is to grow your skillset. Increase your market value. You can't control how companies act, but you can control your salary by focusing on growing. Being overpaid is good for the short term but not in the long term. I have seen too many people stuck in jobs they hate, just because they happen to get a very big salary and are unwilling to take less, for a better position. A good company usually offers a good salary and if the candidate asks for too much, they should reject the candidate, so that they are fair to the rest and also to their cost base. Look for companies and roles in which you can learn and grow, and try your best to do so! Pursue that, and compensation will always follow. I believe that the world should come together and reduce the income disparity that has been increasing. But until that time – we need to be smart when making our decisions.
Digitalizing Healthcare, Empowering Governments, Enriching Lives
1 年Jaideep...companies beginning to build up capabilities of internal talent is a welcome trend if it gets widely adopted across the ecosystem....being a learning solutions provider yourself do you see any gaps in companies going down this path? From a content, delivery model, coaching/mentoring capabilities etc? Would be keen to hear Medvarsitys journey along this path....
Product Manager ?? | Visionary ?? & Craftsman ????
1 年Absolutely true! Writing my thoughts to this: Previously, the emphasis was on valuation rather than value creation. The exit strategy for VCs is no longer an IPO as they have now switched their bets. (Refraining Unicorn moments) Now, SMBs have recognised or must recognise the value of developing High Performance Teams by internally transforming their existing teams: - Marketing focuses not only on acquisition but also on retention and referrals. - Leadership focuses not only on delegators but also on doers. - Product focuses not only on features but also on KPIs & OKRs. - Technology focuses not only on incremental changes but also on proactive involvements. Most interesting puzzle for entrepreneurial folks right now would be anchoring the customers, who have tasted delightful offerings from those cash burning activities.
Take a risk to serve, love and be present - life is too short
1 年Excellent article - this is true with the regional bank failures (SVB being so over indexed in startups is a prime example) in the US too. I believe it will test the companies that are in their respective markets if they are there for the right reasons (owning a yacht, probably not the right reason) and challenge them to operate with efficiency and agility. The old approach no longer serves us and those who can innovate, become lean while maintaining a positive culture (hard balance) will thrive. I see it as both a challenge and opportunity, globally. I enjoy your perspective and wisdom always!
Director Research and Academics at Max Healthcare Research & Academics
1 年What a meaningful and insightful article Jaideep!