Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

Signing up top tech talent is a steep challenge for startups

32% of firms lack knowledge about tools for effective assessment methodologies across the hiring process: Mercer|Mettl report.

, ET Bureau|
Aug 19, 2019, 09.44 AM IST
Getty Images
startups 2 - getty
Nearly a quarter (23%) of the respondents reported to depending on employee referrals while 22% used job portals and forums as the preferred channels for hiring.
BENGALURU: As much as 42% of companies in the IT, startup and SME sectors find getting top tech candidates as the biggest challenge during recruitment, according to a report by talent assessment firm Mercer|Mettl.

The report, titled ‘Tech Hiring & Technology Adoption Trends 2019’, is based on a survey of 350 top executives from more than 200 companies. Of these companies, 40% were SMEs, 30% were startups and the remaining were big IT services providers. Lack of budget came in a close second for nearly a quarter of the respondents during recruitment.

The report finds that more than 32% of organisations lacked knowledge about the tools for effective assessment during the hiring process. Further, 12% of companies did not have a competency framework in place and nearly one-fifth (21%) depended on face-toface interviews to screen candidates. This delayed the hiring processes and led to the companies losing candidates. Only 18% of the companies leveraged technologies based on artificial intelligence to filter resumes.

As much as 85% of the respondents had a tech competency framework in place for a structured recruitment process, and used technology tools to register a success rate of 69%. Tech-driven tools helped the recruiters reduce hiring time by almost a week, according to the report.

Nearly a quarter (23%) of the respondents reported to depending on employee referrals while 22% used job portals and forums as the preferred channels for hiring.


About 12% of the organisations conducted campus hiring and reported to having the highest success rate by closing tech positions 67% of the time. Twenty per cent of the companies evaluate candidates based on proficiency in the required tech skills as the top criterion, while 18% test them with a view of upskilling. Adding to these companies’ hiring woes are also their competitors who offer better pay packages. As much as 60% of candidates decline a job offer for this reason, cites the report. Recruiters also reported to having conducted rehiring for the same position 23% of the times in a financial year. Conversely, what leads a candidate to accept a job offer include the pay and the quality of work.

According to the report, some of the best practices adopted by these organisations were: assessment methods including competency framework-based recruiting, hackathons for sourcing, applicationtracking systems for pre-screening, skill and personality assessment for screening and virtual video interviews for selection. These made the process agile, intelligent, and productive.

Also Read

Startup nation: Indian startup founders reveal important new trends

No Angel Tax on registered startups

Startups seek change in listing requirement

Bad times in tech? Not if you’re a startup serving other startups

This startup is changing the face of surveys

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.

Other useful Links

Follow us on

Download et app

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service