While startups are slowing down hiring employees full-time, many are now looking to partner with skilled gig workers, as per a half-yearly insights report by RazorpayX Payroll, the business banking platform of Razorpay.

While the rate of hiring went down by 36.45% in the past six months, the demand for gig workers—earning more than Rs 1,50,000 a month—increased by 21.38%, the report noted. The headcount of gig workers operating in the business department grew the most—by 28.24%—while the finance department witnessed a headcount growth of 20.18%.

Also, though hiring full-time employees across all departments slowed down in the past six months, onboarding in 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.

The salary spending for full-time employees has increased by 23.07% while for gig workers, the 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. Also, the average salary of CXOs grew by 10.29% in the last six months, the report noted. 

The number of reimbursements to employees too has grown by 15.75%, reflecting the inclination towards a hybrid work culture in the past six months.

According to Ayush Bansal, VP and GM, RazorpayX, the data reflects that startups are increasingly leaning towards automated platforms, reducing operating costs and making payroll compliance efficient.

“Startups continued to remain bullish on hiring skilled gig workers last year. This trend promises a brighter future with more opportunities for specialised workers, giving rise to a new era of work and work culture with greater flexibility and freedom,” he said.

The report observed shifting trends in hiring patterns, salary distribution, and modes of employment in the last six months by analysing payroll data (October 2022 to March 2023) of more than 26,000 employees across 20 sectors currently using RazorpayX Payroll.

Neo-banking platform RazorpayX serves more than 45,000 businesses and has seen over 200% growth in its payouts business and has disbursed payouts with an annualised money movement of above $30 billion. It also recently launched forex services for startups.