The Badge of Burnout: How India’s Startup Work Culture Is Failing Its Young Professionals

Written by: Moitrayee Das, Vrinda Tuteja

In India's vibrant and rapidly growing innovation-driven economy, many small-scale micro-businesses and boutique firms promise "diverse exposure" and "hands-on experience" to interns and recent college graduates entering the workforce. These promises of accelerated career growth are particularly appealing at a time when AI is expected to take over many entry-level jobs. Eager to collaborate and contribute to a variety of workplace solutions while gaining practical knowledge across different business functions, many young professionals willingly accept roles that offer this "diverse exposure."

However, in reality, this rhetoric becomes a cultural badge in these compact business setups, requiring newcomers to adapt swiftly, tackle multiple tasks, and perform under intense pressure. In fact, it typically entails accomplishing everything at once. Employees are forced to fill several roles while learning less about their chosen field and more about survival and coping when there are inadequate systems, little to no HR assistance, and constant scarcity of resources. What is touted as adaptability and hands-on experience gradually devolves into underregulated overwork, setting the pathway for early burnout.

Fatigue has become the new indicator of devotion in an economy where 70-hour workweeks are considered ambitious by industry tycoons such as Narayana Murthy (Ellis-Petersen, 2024). Even so, Japan’s newest Prime Minister, Sanae Takaichi, rejects the notion of any work-life balance and encourages citizens to “work like a horse” (Alex, 2025). These statements may have caused a stir in the global economy, but such behaviours are remarkably common in India.

Findings suggest that almost two-thirds (65%) of startups lack a structured human resources role (The State of Human Resources Leadership Report [2023 Data], 2023). Due to this obvious lack of well-established HR policies and procedures, the chief executive often ends up steering organisational and business-related decisions. Without explicit guidelines or accountability, employees manoeuvre through undefined roles and evolving demands, which quickly depletes their engagement and motivation at work.

Self-Determination Theory states that people feel the greatest motivation when they believe they have control over their work (autonomy), are capable of performing it effectively (competence), and feel connected to others around them (relatedness). Many such companies misrepresent these needs. In microenterprises without HR support, having autonomy often means facing several difficult tasks alone. Workers’ competency is evaluated based on the number of hours they put in, instead of their ability to learn and apply new skills. Eventually, teamwork and relatedness suffer when collaboration is limited and feedback is inconsistent.

What is commonly referred to as "a fast-paced, high-performance culture" often masks overwork and ambiguous expectations, turning early-career development into a series of losses.

India's workforce today clocks some of the longest working hours in the world, averaging 47 hours per week (Ellis-Petersen, 2024). This figure is indicative of collective burnout that is disguised as ambition rather than productivity. This tendency is especially observed in small businesses, where prolonged working hours and 24/7 accessibility are considered indicators of passion and professional growth (Trisca, 2025). Findings also suggest that 47% of employees in small and medium-sized firms (SMEs) work no less than four extra hours each week, with over 50% doing overtime without being compensated for it (McMillan, 2017). Being constantly overworked without adequate compensation is a symptom of a larger toxic workplace culture.

The toxic triangle model explains how destructive leadership thrives when vulnerable employees work in environments that lack checks and balances. In toxic workplaces, unrealistic demands often go unchecked and are even exacerbated by the absence of formal HR procedures rather than managerial shortcomings. The leader inadvertently creates an organisational culture founded on conformity and constant overwork. Over time, workers may develop learned helplessness, viewing unreasonable demands as normal. This phenomenon is well exemplified by the phrase "It is what it is." When employees accept and comply with their reporting officer's unrealistic expectations, they end up feeling severely burned out, experience health declines, and have decreased morale at work (Rizvi & Sikand, 2020). An organisation is rendered ineffective when its people are burned out.

Even in small organisations, the way junior staff members are managed has direct consequences on business performance (Admin, 2024). When knowledge transfer diminishes, employee turnover and absences rise. When employees are disengaged, creativity suffers, having a significantly damaging effect on an organisation's brand and revenue, making it difficult to recruit the next wave of skilled professionals.

Culture lies at the intersection of what leadership says, believes, and does. Any dissonance between words and conduct undermines the confidence and respect that an employee may hold for their leader, further leading to a disengaged workplace. Yet, small teams have proven to thrive, provided their daily operations are guided by integrity, fairness, and authenticity. The literature on ethical leadership invariably suggests that consistency of values is far more crucial than the sheer quantity of policies.

Ethical leadership is crucial for cultivating a healthy work culture. Leaders who demonstrate integrity, fairness, and transparency foster a pleasant and supportive atmosphere that makes employees feel appreciated, engaged, and satisfied with their roles, giving rise to a heightened sense of organisational commitment. However, ethical leadership cannot entirely replace official HR oversight (Oxford College of Management, 2025). Appropriate and adequate people-centric HR regulations are necessary to guarantee that these ethical values are translated into routine tasks and sustainable workplace norms.

Addressing these HR-related issues strategically is both ethical and practical. Organisations that use well-defined systems, routine feedback, and frequent informal and formal recognition foster environments in which people may perform effectively without feeling overworked. Workplace standards such as open communication, regular employee check-ins, and clearly established KPIs decrease uncertainty and promote ownership and accountability.

When executives dismiss the need for HR, they also relinquish their moral responsibility to protect and support their team members. Many small-scale businesses run the risk of cultivating exploitative work conditions without systems that guarantee employee safety, well-being, fair treatment, and compliance. HR systems exist to protect both physical and psychological safety, facilitate fairness in recruitment and employee development, and ensure compliance with laws. When these processes fail, employees are left susceptible to unjust treatment, unresolved disputes, and questionable ethical boundaries. Clear policies, fair grievance procedures, and open dialogue reflect integrity, safeguard employee welfare, and promote an organisation's credibility.

Having leadership that is accountable, transparent, and conscientious is critical for an organisation's bottom line. Founders and executives who integrate organisational structures with clear expectations, support, and accountability create teams that perform effectively and sustainably. For fresh talent, this implies a healthier start to their careers; for microbusinesses, it involves retaining top talent, sustaining output, and establishing a reputation as an ideal place to work.

This allows companies with minimal staff to maintain superior performance without jeopardising employee and organisational well-being. Younger employees effectively bring out their enthusiasm, imagination, and expertise when they are guided by standardised procedures, policies, and principles, along with supportive leadership. Resilience emerges as a result of systems and guidance, not merely endurance. This ensures that both employees and employers flourish in the competitive entrepreneurial context.

An organisation can only be as resilient as the people it protects, not the ones it exhausts.

References

Admin. (2024, July 25). Effects of employee turnover & how policy and procedure help. Comprose, Inc. https://www.comprose.com/blog/effects-of-employee-turnover-how-policies-procedures-can-help

Alex, R. R. (2025, October 21). ‘Work like a horse,’ Japan’s first woman PM Sanae Takaichi rejects work-life balance in first speech. Mint. https://www.livemint.com/news/world/work-like-a-horse-japan-s-first-woman-pm-sanae-takaichi-rejects-work-life-balance-in-first-speech-11761029770497.html

Ellis-Petersen, H. (2024, October 2). ‘Life is pretty brutal’: Concerns in India over high-pressure corporate jobs. The Guardian. https://www.theguardian.com/world/2024/oct/02/life-is-pretty-brutal-concerns-in-india-over-high-pressure-corporate-jobs

McMillan, I. (2017, July 23). SME employees suffering increased burnout. theHRDIRECTOR. https://www.thehrdirector.com/business-news/productivity/sme-employees-suffering-increased-burnout/

Oxford College of Management. (2025, April 4). HR and corporate governance: Driving ethical leadership. Oxford College of Management. https://www.oxfordcollegeofmanagement.com/blog/hr-and-corporate-governance-driving-ethical-leadership/

Rizvi, Yasmeen & Sikand, Ratika. (2020). Learned Helplessness at the Workplace and Its Impact on Work Involvement: An Empirical Analysis. Global Business Review. 097215092097669. 10.1177/0972150920976693.

The State of Human Resources Leadership Report (2023 Data). (2023). BambooHR. https://www.bamboohr.com/resources/data-at-work/data-stories/2023-human-resource-leadership-is-a-human-resources-title-out-of-date

Trisca, L. (2025, January 31). HR challenges small businesses face and how to approach them. Deel. https://www.deel.com/blog/hr-challenges-small-business/

Moitrayee Das is an Assistant Professor of Psychology at FLAME University, Pune, and Vrinda Tuteja is an Alumna from FLAME University, Pune.