SEA startup salaries declined in 2023, except for senior hires: report

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Amid layoffs and other cost-cutting measures, startup salaries across several Southeast Asian markets cooled down in 2023. Pay for junior engineering positions was most impacted, decreasing by 6%, according to a report by Glints and Monk’s Hill Ventures.

The research for “Southeast Asia Startup Talent Trends Report 2024” involved over 10,000 data points and 72 interviews with founders and operators in Singapore, Indonesia, Vietnam, and Taiwan. The startups surveyed are mainly early-stage companies, from post-seed to series B.

Demand for highly specialized senior talent, however, remained strong, with salaries growing 2% to 3% year on year, suggesting that “startups are increasingly relying on more experienced mid-to-senior roles to ensure their survival”. The region’s three highest paid tech roles are VP of engineering (whose median annual salary stood at US$193,200 in 2023), VP of product, and VP of data.

Revenue-generating roles also remained at the forefront, with business development and sales salaries seeing hikes of up to 20% last year.

In terms of hiring trends, the emergence of an AI-centric landscape has affected how startups recruit talent. For instance, there is a growing emphasis on soft skills, such as critical and creative thinking.

However, AI adoption is hampered by employees who are concerned that their jobs might be replaced by the tech, according to founders. That said, these fears have not necessarily become reality, as productivity gains from using AI lets companies maintain the same headcount without hiring new staff.

“When envisioning the future of work, it’s critical to seize AI opportunities while also adhering to fundamentals when it comes to hiring,” stated Oswald Yeo, co-founder and CEO of Glints.

Startups are also seeking regional talent to diversify their teams, with 70% of respondents intending to expand their cross-border hires. This ties in with a rise in hybrid work, which is among the initiatives startups offer to retain their staff.

See also: The good, the bad, and the hallucinations: What SEA startups think of AI