Amid Dip In Hiring, Demand For Specialised Gig Workers Increases 21% In Last 6 Months; Details Here

Even as startups in India have been facing headwinds for the past 12 months, hiring by them has also taken a hit. Several startups have also gone for multiple rounds of layoffs to cut costs. According to the ‘Half-Yearly Insights’ by RazorpayX Payroll, the rate of hiring went down by 36.45 per cent in the past six months, while the demand for gig workers increased by 21.38 per cent.

“Indian start-ups have experienced unprecedented headwinds in the past 12 months and this has further intensified in the past six months. However, the majority of them have taken calculated measures to continue building their businesses sustainably. This has led to a slew of developments within the ecosystem in the last 6 months, including massive shifts in hiring patterns, salary distribution, and even modes of employment trends,” Razorpay said in a statement.

The Half-yearly Insights by RazorpayX Payroll, the business banking platform of Razorpay, has brought several findings by analysing payroll data from October 2022 to March 2023 of over 26,000 employees across more than 20 sectors who are currently using RazorpayX Payroll.

According to the report, the headcount of gig workers operating in the business department grew the most by 28.24 per cent and the finance department witnessed a headcount growth of 20.18 per cent.

“While hiring full-time employees across all departments slowed down in the past six months, sales and marketing teams have grown by 20.61 per cent. The hiring of full-time CXOs and Senior Executives declined the most (36.02 per cent) during this period,” it said.

The report also added that while overall hiring has dipped, overall salary spends for full-time employees have increased by 23.07 per cent. Similarly, within the gig workers’ cohort, total salary payouts rose by 20.94 per cent.

“The average salary for entry-level jobs took a dip of 13.36 per cent, indicating a gradual decline in the CTC for freshers. And the average salary of CXOs grew by 10.29 per cent in the last six months,” it said.

In the past six months, the number of reimbursements to employees has grown by 15.75 per cent, reflecting the inclination towards a hybrid work culture. RazorpayX’s Payroll platform has enabled the filing of over 2.5 lakh reimbursements in the last six months with a total amount of Rs 105 crore being claimed, according to the report.

Ayush Bansal, vice-president and GM, RazorpayX, said, “In the face of challenging macroeconomic scenarios, Indian startups have always exhibited remarkable resilience and adaptability, and have continued to cement their position as one of the world’s most dynamic startup hubs. The data from RazorpayX Payroll platform reflects the same spirit and shows that startups are increasingly leaning towards automated platforms, which has helped them navigate the ever-evolving business landscape with agility, reducing operating costs and saving crucial hours on payroll compliance.”

He added that startups have continued to remain bullish on hiring skilled gig workers last year. This trend promises a brighter future with more opportunities for specialised workers, giving rise to a new era of work and work culture with greater flexibility and freedom.

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