In the latest edition of its Southeast Asia Startup Talent Trends Report 2024, Glints and Monk’s Hill Ventures revealed that startup salaries in major Southeast Asian (SEA) tech startup ecosystems “cooled” in 2023, with junior engineering roles seeing the sharpest decline of -6 per cent.

“Despite layoffs and salaries cooling, demand for tech talent remains high across markets amid increased supply. Due to tech layoffs, the market has seen a notable increase in the availability of junior roles, particularly within engineering sectors, leading to a higher supply of candidates. This influx has resulted in a downward adjustment of salaries across various positions. However, senior talent, such as VPs of Engineering, remains competitive, highlighting the continued demand for highly skilled individuals,” the report detailed.

Most senior tech roles saw steady growth Y-o-Y, such as two to three per cent increases for senior engineer roles.

The report further revealed that business development and sales salaries spike with increases of up to 20 per cent, signifying that revenue-generating roles continue to take centre stage. The business development and sales function experienced high salary increases (+14 per cent on average for roles in Singapore), reflecting a heightened emphasis on achieving profitability in 2023.

It also spotlighted the increasing popularity of cross-border hiring, stating that 70 per cent of survey respondents plan to increase cross-border hires this year. This trend is expected to continue into 2024.

Skills diversification and cost-efficiency are some of the reasons cited for businesses to tap into hybrid work.

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This report is the third edition that the organisations have released, taking a deep dive into hiring trends, salary and equity data for founders and C-suites, and startup talent from over 10,000 data points, 183 C-suites and founder data points, and 72 interviews with startup founders and operators across Singapore, Indonesia, Vietnam, and Taiwan.

Spotlight on AI

Previous reports on talent trends in the Asia Pacific job markets had highlighted the increasing focus on soft skills in hiring candidates. This is a trend that Glints and Monk’s Hill Ventures noted in their report.

With an increasing focus on efficiency, the founders’ immediate focus revolves around the automation of administrative tasks, content creation, and customer service, demonstrating a concerted effort to streamline overall operations.

This strategic move aligns with the regional trend where soft skills, such as critical and creative thinking, have gained prominence due to market competitiveness and the evolving AI-centric environment. Furthermore, a notable shift is observed in founders’ expectations, as proficiency in AI tools is increasingly becoming a fundamental requirement for technical and non-technical roles, akin to the ubiquity of skills such as email or Excel.

It is important to note that despite the palpable benefits of AI in boosting workplace productivity, job security remains intact, dispelling initial concerns about widespread job displacement. Founders acknowledge and understand employee apprehensions about adopting AI technologies, but the anticipated fears of significant job losses have not materialised.

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According to the report, this recognition of ongoing job security reinforces the balanced approach SEA startups are adopting as they navigate the integration of AI into their operations.

“The past year’s challenges in a tightened market have highlighted a greater need for adaptability and resilience. Looking ahead, the increasing value placed on soft skills alongside technical expertise signifies a shift towards cultivating a workforce that is versatile and AI-fluent,” said Glints Co-Founder and CEO Oswald Yeo in a statement.

“When envisioning the future of work, it’s critical to seize AI opportunities while also adhering to fundamentals when it comes to hiring: attracting top talent and building cohesive, high-performing teams, regardless of how the workplace continues to evolve.”

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