Indian start-up spendings on employee salaries, hikes, promotions and new hires have been increased by 43 per cent between April and September 2021. In a survey, RazorpayX Payroll, the business banking platform of fintech major, Razorpay, revealed that total salary spent by start-ups have increased by 43 per cent during the period, indicating hikes, promotions, and new hires.
Last year, due to the Covid-19 pandemic, many start-ups had to freeze performance appraisals and increments. However, the survey, conducted on 25,000 employees across 360 organisations, says that the scenario has reversed this year, indicating a gradual movement towards a business recovery.
Shashank Kumar, CTO and Co-Founder, Razorpay said, “Businesses across industries are on the road to recovery and these insights reiterate this in many ways."
Edtech, fintech, and electronics (online and offline) are some of the sectors that witnessed a significant increase in salary spending during the last six months.
The report also shows that some start-ups have increased the median salary by 7 per cent during April and September this year and there has been a 52 per cent increase in organisations that disbursed bonuses.
The amount paid out on bonuses increased by 23 per cent during the past year as opposed to pay-cuts and deferred bonuses last year. Real Estate, Hospitality and AgriTech were unable to provide bonuses yet, the report added.
Employee headcount has been increased by 30 per cent between April and September this year. At an individual organisational level, 57 per cent of the organisations saw an increase in hiring, and 28 per cent saw a decrease in headcount, in the last six months.
In addition to these, experts have also predicted that start-ups' spending on reimbursements and allowances would rise to 80 per cent to further enable remote and hybrid work regimes.
Experts also indicate that among all start-ups, contractors, freelancers and gig economy payments are on the rise. Employee health and wellbeing will continue to remain a top priority, they added.
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