Serious concerns for startups: Survey reveals 90% employees tend to switch job to established firms

Life in startups appear glamorous from outside but indeed it’s a tough one for founders as well as employees. Maintaining work-life balance often turns south as startup work culture is inherently demanding and require strong motivation with a fine blend of passion and tenacity.

Startups aren’t for everyone and this reflects in the latest survey carried by JobBuzz study across 1,250 employees.

Lack of work-life balance, insecurity about job and career path are major reasons for professionals looking to grabbing a job at established firms aka corporates. About 75 per cent of senior and junior employees said they are ready to switch job to larger and structured companies.

Notably, 90 per cent of the respondents in metros are eyeing jobs at established firms. It also signifies that startups are also grappling with a less motivational workforce. Because I am sure that such employees can’t deliver excellent results for a startup when they don’t find fun or comfort in challenging situations.

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While 55 per cent respondents said that they joined newly launched companies as it has the thrill of ownership and associate it with a sense of building something out of scratch, 20 percent of the survey sample size is smitten by flexible working hours and high salary.

Unsurprisingly, only 5 per cent factors ESOPS as a sole reason to join startups. Employees don’t value equity as the only handful of startups have delivered a return to them.

Close to 60 per cent respondents worry about what happens to their future if startups fail. About 5 per cent of the surveyed employees willing to join established companies because of brand status attached to them.

Though, Jobuzz study can’t be generalised on the scale. Certainly, it raises concerns about the availability of meaningful workforce specific for startups. Large-scaled companies such as Paytm, Flipkart, Ola, Citrus Pay and a host of others have rewarded their employees against ESOPs.

The findings of the survey were first reported by TOI.