Market being very volatile post witnessing the 1000s of voluntary resignations and pink slip evacuated massive workforce from multiple Edtech players including some big fishes have already sent a shockwave across all the investors and leaders in the startup community.
If you ask, is this the worst? and I would definitely tell you NO. Because the market is learning from its mistakes. Too many players in the same industry will push them more to burn on Marketing which will eventually lead to price war. When you are compelled to sell you product (or) services by compromising your profit, you are already in the wrong footing. Where does this lead to? Cost cutting. And yes, how do you start cutting the cost? You fire people who are in high packages and those who are not meeting the companies standard performance aspects. The regular drill.
And that’s how we see a lot of talented tech and non-tech folks flooding the industry with their updated resumes today. Now too many fishes in the pond. What will happen next?
Expected salary will decrease as the demand falls due to easy availability of ’n’ number of candidates in same skillsets. This snatches the power of negotiation from the hands of the candidates. Of course, I agree there was a huge artificial inflation caused in the salaries of the mid-level talents in the last 5 years and it will be sorted out using this current recession phase. Those who took highly inflated offers using their offer shopping strategies are already been targeted to deliver very high performance. The one who didn’t meet the delivery is the first one to come out in the market.
This will also pass. The market will consolidate itself. This will help the product startup communities to shake up the tree and get rid of poor performers and high burning salary expenses. Hiring process will see some new changes in the coming months. Companies will opt for stricter evaluation methodologies to select each candidates for their designated role. The candidates will also adapt to this change eventually and improve their skill sets to match the market expectation and they should also be ready to wear multiple hats in the same role. Those who had highly inflated salary expectations will now come down to a justifiable ask from their new interviewers. This gloomy dullness in the industry will swiftly pass and in the next quarters, I strongly believe that we can see some healthy hiring trends emerging from every domain. Already some big services companies started hiring in 1000s. This jolt is a very temporary one which will help the upcoming companies to learn from their mistakes and consolidate themselves.
Its always better to utilise the existing resources to the fullest than hiring exponentially. It becomes even more dangerous when you do this without a plan. So, the good news is that, funding is happening for many startup companies as usual and hiring is going on naturally in an increasing trend for some. 2022 to 2023 will be a fantastic year to attract new talents with new plan and strategies in place. For candidates – new companies awaits you. Prepare, train and educate yourselves and a greater assignment with excellent learnings is waiting for you. Go and take it…
We at Scaling Theory are always prepared to meet the requirements from the market and the candidates. According to our internal analysis, only very few of our big time clients have frozen the hiring in a temporary basis which didn’t make any dent in our economics. But on the brighter side, we have onboarded new hyper-growth startups like Gumlet, Recur.club and Arthvit for their hiring needs. So reach us in vikna@scalingtheory.com for all your tech and non-tech hiring needs.
See you in the next blog in September 2022…
Vikna Prakash
Founder & CEO Scaling Theory
(A new-age talent advisory exclusively dedicated to support hyper-growth technology product companies in SaaS Marketplace)
