European startup tech hiring plunges; pay hikes halve
LONDON, UNITED KINGDOM — A new report by compensation platform Ravio reveals a major pullback in hiring and pay rises at European tech startups this year.
Hiring rates have plunged nearly 40% in 2023 compared to last year. The drop is even steeper at 50% for late-stage startups looking to rein in costs and prioritize profitability over growth.
With cautious optimism for 2024, over half of the 900 startups surveyed aim to maintain headcount at current levels by replacing but not adding to their teams. Only 20% still plan to expand hiring next year.
Compensation is also being reined in. The average salary increase in 2022 was approximately 8%, well above the non-tech EU average of 2-3%. However, tech startups are now budgeting for a much smaller raise of 4.8% in 2023 amidst rising inflation and tighter financial conditions.
Ravio, founded in 2021 and based in London, provides real-time compensation benchmarking for over 150,000 positions across European tech companies.
“We hope to not only help startup employers navigate this new economic reality, but also employees understand what fair pay looks like for them in this job market,” said Ravio founder Roy Blanga.
