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Why French start-ups freeze their recruitment less than others

JobAdvise Editors by JobAdvise Editors
September 8, 2022
in News
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They witness

  • Claude Calmonfounder of Calmon Partners Group, a three-party company combining a recruitment firm, a fundraising support structure and a communication agency
  • Emmanuel Stanislasdirector of the recruitment firm Clémentine

Global freeze in start-ups

For start-ups, is this also the end of the “abundance” predicted by President Emmanuel Macron on August 24, 2022? A study* by NGP Capital, a venture capital firm specializing in tech, confirms in any case a global freeze.

In this study, which takes the pulse of jobs in 12,000 start-ups around the world, “job vacancies fell by 40%, globally between February and June 2022” and even 60% for BtoC start-ups (dedicated to sales to individuals).

If during the week of January 30, 2022, 14,944 jobs opened, they were only 8,813 the week of June 19…

More resilient French start-ups

Surprise, “French start-ups have suffered less than their European or American counterparts, explains NGP Capital. Their number of job offers has only fallen by 9% in 5 months” compared to a drop, for example, of 60% in Sweden and Germany or 53% in Great Britain…

Source: NGP Capital study*

How to explain this resistance?

Thank you state aid

Claide Calmon

“The main explanation lies in the fact that these start-ups were able to benefit from much more state aid than their European or American counterparts, in particular the state-guaranteed plan (PGE). This has allowed French start-ups to stay afloat or even grow and not lay off workers,” explains Claude Calmon, founder of Calmon Partners Group. There has therefore been little impact on recruitment and fundraising has continued well”.

More cautious investments and a more protective BtoB tropism

The cultural also played. French investors are more sensitive to risks, invest less, concentrate their funds in the most solid start-ups, with more complex, longer processes and more in-depth analyses…

To this must be added French investors financing BtoB start-ups, companies taking less risk than those working for individual consumers (BtoC), who are more versatile and less “fortunate”.

Is it still safe to apply to start-ups?

Emmanuel Stanislas

Faced with this crisis, should executives abandon start-ups?

“I will not speak of a crisis, tempers Emmanuel Stanislas, director of the recruitment firm Clémentine, specializing in the hiring of executives who are experts in digitalization. But rather of temporization and more economical start-ups for fear of a trend reversal. But, whatever the case, the executives of these companies have nothing to worry about. They do not depend on the financial health of their company but on their employability. And the latter is excellent. I see a rather unique “decorrelation” between a possible economic slowdown and hiring. These are in the firmament. I therefore invite tech executives to remain calm. There are a lot of job offers on the market. and if they can’t find a job in a start-up or if they lose their job, all the other employers are looking for specialists in digital transformation. 10% of my turnover is made by public employers such as the CAF, the CNED or the CCIs. Large groups are also recruiting en masse.

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Reading list

  • Digital: top 3 really short-sighted jobs that employers are snapping up
  • Will the US tech layoffs benefit French companies struggling to recruit?
  • Braids also for Air France stewards (and other info on parity)
  • Marie-Claire Lemaitre, Mercuri Urval France: “It is no longer enough to have an employer brand to attract talent”
  • Nicolas Puzin, Harry Hope “You almost become a candidate agent”
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