Startup salaries and increments: The average increment for the FY23 in startups stood in the range of 8 to 12 per cent, stated the 2023 edition of Startup Paypulse report, published by Elevation Capital, an early-stage venture capital firm. The report states that the main criteria for top considerations for hikes were Performance and Promotion.
As per the report, the average hikes for tech roles were also between 8 to 12 per cent. For small startups with technology teams of less than 40 employees, salary increments for the entry and mid-level roles were in the range of 15 to 20 per cent. Despite variations in the macro factors, the technology sector has still experienced quite a bit of growth, around 20-25%. However, not more than 10 per cent of any company’s overall workforce has received such a raise in the period.
The average hike in the leadership roles was in the range of 8 to 10 per cent. The trend observed by the report states that the leadership was provided stock grants in lieu of the cash increments by the startups. Also, salary revision and restructuring were observed due to the macro factors affecting the startup ecosystem.
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According to the report, Bengaluru and Hyderabad were the two largest tech talent cities during FY23 in terms of availability. While Bengaluru alone had 51 per cent of talent availability, Hyderabad had 21 per cent, followed by Pune/Mumbai (10 per cent), Delhi/NCR (8 per cent) and Chennai (8 per cent). The factors were taken into consideration, such as the cost of hiring, the skill level and quality of the available talent, attrition rates, and the cost of living in these locations, while positioning these rankings.
Since the recovery from COVID-19, the entirely remote working trend has seen a decline, and the startups have switched to the hybrid mode. The Hybrid model has become the new normal, and employers allow their staff to work remotely for approximately 40-50 per cent of the week.
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Furthermore, the major shift towards the Employee Stock Ownership Plan (ESOP) has been amplified majorly due to the talent attraction and retention factor it provides to startups. Also, it helps to align the employee’s goals with the company’s goals. From the employee’s perspective, it incentivizes performance and fosters ownership.