Subdued salary hikes at startups for FY23 just enough to cover inflation, says Elevation Capital Report

The survey involving over 200 startups revealed that entry and mid-level employees, especially those in tech roles, were slightly better off with increments in the range of 15-25 percent.

“However, not more than 10% of any company’s overall workforce has received such increases this year,” the report said, highlighting that 10-50 percent of the salary has come in the form of Employee Stock Option Plan (ESOPs) for employees on the low-to-mid rung of the ladder.

Compensation correction and restructuring as well as new stock grants instead of cash increments was greater for employees at the leadership level, according to Kallan.

With overall salary increase trends cooling down in the technology sector compared with the levels seen in the boom periods of 2020-2022, both startups and potential talent have adopted a careful approach.

“With a significant talent pool of mid to senior-level executives available in the market, companies are focusing their efforts on a select few roles, investing more time to ensure the perfect fit,” said Dipesh Jain, AVP - Talent, Elevation Capital.

“Interestingly, on the other hand, job seekers are willing to wait longer for the right job opportunity than settle for less-than-ideal pay,” Jain added.

As per the survey, those vying for tech roles have less to worry about in these troubling times as the demand for AI talent is likely to stay elevated going forward, followed by product, engineering and other functions.