Think & Grow report shows importance of wellbeing, growth, and compensation

Think & Grow, an Australian search and growth advisory firm, has revealed its 2022–23 Australian Start-up Salary Guide in partnership with HR software company HiBob.

The report identifies the ways that start-ups are navigating the current work climate through initiatives such as growth, wellbeing, and compensation.

Co-founder of Think & Grow, Jonathan Jeffries said: “We have been building businesses with great fundamentals at their core from early days and I’m uplifted to see businesses in more diverse arenas this year like space, medtech, agtech and climate persevering with funding and growth.”

Growth is key with three quarters of respondents planning to ramp up hiring in the next three months, while 90% per cent plan to within the next six months.

Mr Jeffries continued: “Despite skills and labour shortages, we see start-ups intend to hire, and that despite decreased funding available start-ups also plan to raise capital in the short term.”

“We foresaw last year that it would be people and how we think about the human experience at start-ups that would move the needle for growth in this climate - not only from the perspective of finding and keeping great talent but also for propelling sustainable growth and protecting cash flow in turbulent times,” he said.

Wellbeing is also a focus of the start-ups, with ‘workplace wellness’ being the buzzword of the year. The report said that of the start-ups surveyed, they offer:

• 30 per cent – wellbeing programs
• 53 per cent – compassionate leave
• 48 per cent – mental health days
• 37 per cent – training allowances
• 93 per cent – flexible working
• 54 per cent – food in the office
• 43 per cent – paid parental leave

Asia-Pacific regional head at HiBob, Damian Andreasen, discussed how to improve wellbeing at an organisation: “Culture isn’t built around perks like ping pong tables, free beer or nap pods. It’s built on the values of every single person within an organisation.”

“Treat each employee as an individual and have transparent conversations with each and every person about their motivations. Some of the great methods I’ve seen Australian businesses use to successfully retain and engage employees include flexible work arrangements, extended holiday, parental leave, ESOP, healthcare, learning and development opportunities, clear career paths and mentoring.”

According to the research, almost three quarters have an employee stock ownership plan (ESOP), up 24 per cent from the previous year. A variety of roles saw increased salaries compared to last year’s data. CEOs and engineers’ salaries rose 8 per cent, and sales rose by 12 per cent. Think & Grow highlighted this may be due to talent shortages.

A CEO and director, Nicola Burgess, said in the report: “In terms of retention incentives, understanding the motivations behind the individual is important and where I’ve seen companies do it well avoids a blanket approach with consideration of how to scale and communicate more broadly.”

18 representatives from various start-ups were surveyed, with data from 138 Australian start-up companies and 2,365 roles used.