Hybrid work becoming the status quo in SEA except in Vietnam: Report

Hybrid work is becoming the status quo in Southeast Asia, with 45 per cent of companies providing it and only 12 per cent offering remote work options to employees, finds a joint study conducted by Glints and Monk’s Hill Ventures.

While in Singapore, about 63 per cent of startups offer hybrid work and 43 per cent full-time office work. In Indonesia, it is 59 per cent (hybrid) and 33 per cent (full-time office work).

Vietnam has bucked the trend, with 83 per cent of companies offering full-time office work, while only 11 per cent favour the flexibility of hybrid work.

The Southeast Asia Startup Talent Report 2023 further finds that a flexible or hybrid work environment is equally essential as performance and annual wage supplement bonuses.

Also Read: Tech talent war in Singapore expected to continue as the job market stabilises in 2023: Report

Another key finding of the study is that the tech talent crunch still persists in the region, with tech roles remaining high in demand, earning, on average, 38 per cent more than non-tech roles. Engineering remains the most sought-after tech function, with the VP of Engineering making upwards of US$235,200 annually.

Specialised skills such as product and data are also highly attractive to employers. After engineering, talent in product and data is the highest-paid.

Singapore remains the most expensive market to hire tech talent, with engineers paid 3x higher than in Indonesia and Vietnam. Product managers are also paid 3x higher in Singapore than in Indonesia and Vietnam.

The tech talent compensation landscape started destabilising at the beginning of 2022, with the crypto bubble bursting and a wave of tech layoffs from tech giants such as Shopee, Lazada, and GoTo. The impact will continue reverberating throughout 2023 as tech startups search for ways to cut costs and extend their runway for another 12-36 months, particularly as many investors and founders expect a more challenging fundraising environment this year.

Other key findings of the report:

• Median CEO base salary grew 2.4x for those that raised US$0-5 million rounds compared to 2021 as companies raised larger rounds. More CEOs are taking greater equity dilution, likely due to the current headwinds. A 5 per cent drop in equity was seen for CEOs in the US$5-10 million funding stage compared to 2021.
• Product managers saw the most considerable salary increase, making 27 per cent more than in 2021.
• As companies focus on profitability and positive cash flow this year, the top three functions that companies prioritise hiring for in 2023 across markets are engineering, business development & sales, and marketing & PR.
• Cash still prevails over equity in the region. While 86 per cent of companies surveyed offer ESOP, on average, ESOP is only made available to one-third of their talent.

For this report, Glints and Monk’s Hill Ventures analysed over 10,000 data points for tech startup roles in Singapore, Indonesia, and Vietnam. The survey received more than 150 C-suites and founder data points.

Glints and Monk’s Hill Ventures also conducted a talent survey with over 500 tech and non-tech talent working in startups and a 2023 hiring sentiment survey with 58 startups in Singapore, Indonesia, and Vietnam. In-depth interviews were conducted with over 40 founders, VCs, and operators from Singapore, Indonesia, and Vietnam. Founders in Thailand, Malaysia, and the Philippines also contributed additional perspectives.

Also Read: Singapore faces talent crunch for engineering and product manager roles: Report

“Attracting and building high-performance teams remain top of mind for founders and their teams, particularly in a climate where they have to do more with less while achieving positive unit economics. There is still much more to do to provide the tools for employers and talent in startups to make informed decisions about their talent strategy,” said Oswald Yeo, Co-Founder and CEO of Glints.

“There has been no better time to build high-performing teams in Southeast Asia. Despite headwinds, the region is poised for growth, with tech innovations taking centre stage and investments flowing in to back this stream of sustainable growth. There is a lot of ground to cover for startups to attract and retain top talent in the current climate,” added Peng T. Ong, Co-Founder and Managing Partner of Monk’s Hill Ventures.

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