The startup ecosystem in Southeast Asia, home to trailblazers like Grab, Gojek, and Glints, is rapidly evolving. In this landscape, startups need to adopt a holistic approach to compensation. This means going beyond traditional salary structures to include equity, bonuses, and other non-monetary benefits.

Embracing a holistic compensation strategy

Startups should realise that in today’s competitive market, cash is often king. However, the allure of equity can’t be ignored, especially when dealing with long-term, committed employees. Equity offers team members a sense of ownership and aligns their interests with the company’s success.

For instance, companies like Grab have been known to offer comprehensive benefits, including equity, which not only attracts talent but also fosters a sense of belonging and loyalty​​.

But it’s not just about financial rewards. In a downturn market, employees are valuing flexibility more than ever. Remote work options, flexible hours, and attention to work-life balance are becoming key factors in employee retention and satisfaction. Startups should look towards companies like Gojek, which have adapted to these trends and offer flexible working arrangements alongside competitive compensation packages​.

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Recognising the value of diverse talent

In a region as diverse as Southeast Asia, understanding and appreciating the varied talent pool is crucial. Startups must recognise the unique contributions of their team members and compensate them accordingly.

Technical roles, such as those in engineering and data science, continue to be in high demand, with companies willing to pay a premium for these skills. For example, technical roles in startups can earn up to 54 per cent more than non-technical roles, underscoring their value in the tech-driven marketplace.

Startups need to offer competitive salaries to attract and retain such talent, but they should also explore other forms of compensation. Bonuses, performance incentives, and opportunities for professional development can go a long way in acknowledging the contributions of these skilled professionals.

It’s also important to consider regional variations. Salary trends in Vietnam, for instance, indicate a high growth potential, especially in technical roles. Startups in different Southeast Asian countries should tailor their compensation strategies to reflect these regional dynamics, ensuring that they remain competitive and equitable.

Building a culture of transparency and recognition

Finally, the key to a successful compensation strategy lies in transparency and recognition. Startups need to communicate clearly how compensation packages are structured and how performance is evaluated. This transparency builds trust and ensures that team members feel valued and understood.

Creating a culture of recognition goes beyond financial compensation. Public acknowledgement, awards, and even simple expressions of gratitude can significantly impact employee morale and loyalty. Startups should aim to recognise the hard work and achievements of their team members, fostering a positive and inclusive company culture.

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For instance, companies like Glints have set standards in the region by not just offering competitive salaries but also by nurturing a culture that values and recognises each employee’s contribution. This approach helps not only retain talent but also build a motivated and dedicated workforce.

Looking forward

As startups in Southeast Asia navigate through bear market realities, rethinking compensation is more important than ever. It’s about striking a balance between financial rewards and creating an environment where employees feel valued, motivated, and part of the company’s journey.

By taking a holistic approach to compensation, startups can retain their most loyal team members and attract the talent needed to drive future growth and success. This approach ensures that startups not only survive the challenges of today but also thrive in the years to come.

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