- Salaries to Gig workers witnessed a growth of 20.94% in the past six months; these include highly skilled gig workers earning more than INR 150K per month
INDIA, Bangalore, 5th May 2023: Indian startups have experienced unprecedented headwinds in the last 12 months and this has further intensified in the past 6 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. The Half-yearly Insights by RazorpayX Payroll, the business banking platform of Razorpay, has brought several interesting findings by analyzing payroll data from Oct 2022 to March 2023 of 26,000+ employees across 20+ sectors who are currently using RazorpayX Payroll.
Here are the top insights:
- Demand for Skilled Gig Workers Increases Amidst Startup Hiring Woes: While the rate of hiring went down by 36.45% in the past six months, the demand for gig workers, earning more than INR 150K per month, increased by 21.38%. This signifies higher demand for particularly skilled gig workers.
Interestingly, the headcount of gig workers operating in the Business Department grew the most by 28.24% and the Finance Department witnessed a headcount growth of 20.18%.
While hiring full-time employees across all departments slowed down in the past six months, sales and marketing teams have grown by 20.61%. The hiring of full-time CXOs and Senior Executives declined the most (36.02%) during this period.
- Salaries Continue to Increase Despite Hiring Slump: While overall hiring has dipped, overall salary spends for full-time employees has increased by 23.07%. Similarly, within the gig workers’ cohort, total salary payouts rose by 20.94%.
The average salary for entry-level jobs took a dip of 13.36%, indicating a gradual decline in the CTC for freshers. And the average salary of CXOs grew by 10.29% in the last six months.
- Automated Reimbursements Gain Traction in Hybrid Work Culture: In the past six months, the number of reimbursements to employees has grown by 15.75%, 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 INR 105 Cr being claimed.
Ayush Bansal, VP & 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. Additionally, startups have continued to remain bullish on hiring skilled gig workers last year. This trend promises a brighter future with more opportunities for specialized workers, giving rise to a new era of work and work culture with greater flexibility and freedom.”
RazorpayX currently serves over 45,000 businesses and in the last 6 months has helped save 300+ man-hours for startups. The neo-banking platform has seen over 200% growth in its Payouts business. The platform has disbursed payouts with an annualized money movement of over $30+ billion. In a first-of-its-kind move, RazorpayX also recently launched Forex services for startups to seamlessly transfer the funds they have raised globally to India.