Web3 Compensation Survey Reveals Resilient Hiring Plans
A recent survey conducted by Variant and USV in the web3 sector showed that many companies have not changed their hiring plans despite the bear market. This is particularly true for engineers, with a majority of respondents stating that the prolonged bear market did not impact their hiring plans for engineers specifically.
Competition for Talent within Web3 Space
The survey found that web3 startups primarily compete for talent within the web3 space. About half of the respondents compete with other crypto startups for new hires, while 25% compete with web2 companies, and another 25% recruit from both sectors. This suggests that it is easier to recruit from within web3 during a bear market.
Hiring Costs and Compensation Structures
Web3 companies face higher costs for talent compared to web2 firms. The survey also revealed that compensation structures are evolving, with traditional equity becoming as significant as tokens in attracting employees. Engineers dominate web3 teams in both numbers and salary, with senior web3 engineers earning 23% more and early-career engineers earning 27% more than their peers in the general market.
Geographical Decentralization and Diversification
Web3 startups are increasingly geographically decentralized, with half of the employees based outside the U.S. for domestic companies. The survey concludes that crypto companies are not only enduring the bear market but also using it to diversify their operations and expand their engineering teams.
Anticipated Conclusion of Bear Market Cycle
Crypto market commentators anticipate that the bear market cycle might conclude in the run-up to 2024. The December market has shown signs of recovery, with Bitcoin staying resilient above crucial market levels. The upcoming BTC halving and the potential approval of the first Bitcoin spot ETF could create optimism for next year. Future hiring trends may depend on sustainable fund flows into the market.
Hot Take: Crypto Companies Remain Resilient in Hiring Plans Despite Bear Market
The web3 compensation survey conducted by Variant and USV reveals that despite the challenging bear market, crypto companies, particularly in the web3 sector, have shown resilience in their hiring plans. Engineers continue to be in high demand, with web3 startups primarily competing for talent within the web3 space. The survey also highlights the higher costs for talent faced by web3 firms and the evolving compensation structures. Additionally, web3 startups are diversifying their operations and expanding their teams. While there is anticipation for the bear market cycle to conclude, market optimism depends on factors such as the approval of a Bitcoin spot ETF and sustainable fund flows.
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