Startup Investors push Founders to focus on Stronger Unit Economics

The hiring volume and frantic velocity with which companies were pulling in talent just a few months ago are already exhibiting symptoms of slowing down as funding hits a snag at Indian startups and investors ask founders to focus on improved unit economics. According to executive search agencies and startup founders, many startups have pushed recruiting mandates to the next quarter as they head into a financing winter and wish to go slow on expansion and tread gingerly to conserve cash.

According to search firms Longhouse Consulting and Ciel HR Services, the number of available positions is decreasing, and organisations are reducing counteroffers used to attract and retain talent.

“Companies are delaying their decision to close an open position. Some are delaying it till next quarter. They are buying time,” said Anshuman Das, chief executive of CareerNet and Longhouse Consulting.

“That aggressive pitching of salaries, readiness to give huge counter-offers to rope in talent is not there anymore. That aggressive salary pitching and willingness to make enormous counter-offers to entice people is no longer there," said Ciel HR Services CEO Aditya Narayan Mishra.