*Salaries are always a bit of a mystery when you work in a newer industry like PropTech. Benefits and other aspects of compensation like equity and bonus potential are also veiled. This leaves both job seekers and hiring companies alike in the dark about what salaries should be, and more importantly, what a generous, total compensation package looks like.
This summer, we partnered with Fifth Wall, the biggest VC firm in the industry, to find out what it’s like to work in PropTech. From compensation to employee satisfaction and workplace models, we asked 500 people in the industry to tell us how they’re paid, if they’re happy at their current job, and what would make their employee experience better.
You can read the full report here, which covers five key findings from the data, plus a deep dive into salary benchmarks across marketing, sales, product, tech, data science, and customer success. Here are just a few of the highlights from this research.
The Compensation Mix
Overall, people in PropTech are paid well, but salaries and total compensation packages vary greatly depending on the department, experience, and where they live. When comparing all survey responses, 33% earn more than $150,000 a year in terms of gross salary. For directors and above, that percentage jumps to 45%. Beyond their salaries, most people (67%) can earn a bonus or commission. In addition, nearly 40% of people surveyed also have an equity stake in their company.
Salary Range for Total Survey Population
Beyond the survey data, our team analyzed average salaries for current and recently filled job openings to showcase common career – and salary – progression within those functions. Here’s what that journey looks like for software engineers, which has many of the highest salaries across any department in PropTech:
And, here’s the progression for people in sales:
On average, salaries in the US and the Asia Pacific are 40% higher than in the UK and Europe. Salaries in the US have increased 20-30% over the past year alone. Startups born in the Asia Pacific are being joined by more mature PropTech companies looking to establish themselves in the space, particularly in Singapore where the tech sector is expected to grow 30% by 2025.
Salaries in Europe trend lower, matching the region’s lower costs of living. However, this shouldn’t be considered a sign that PropTech isn’t an emerging sector there. In the UK alone, there are nearly 800 PropTech companies, most choosing London as their regional hub. Regardless of location, tech and data roles are fetching the highest salaries right now. From software engineers and data scientists to product heads and project directors, the people responsible for building the technology and delivering insights to customers are at the top of the pyramid.
Going Beyond Basic Benefits
Unlike the lure of bonuses and equity, benefits packages leave something to be desired, especially when compared to other tech sectors and traditional real estate companies. These lacking benefits have a direct impact on employee retention – 43% of those surveyed said they’d leave their job for better benefits.
Although most people in PropTech have healthcare coverage (74%) and flexible work hours (65%), the benefits that arguably make the biggest impact on people’s well-being are missing. For example, only 56% said their companies offer parental leave and just 41% have access to a company-sponsored retirement plan. Even fewer people have access to commuter benefits, wellness stipends, and income protection.
As the industry matures, the benefits offered will too. But as the competition for well-rounded, experienced talent continues, finding ways to add impactful benefits will not only keep current employees happy but will also attract new talent.
Putting This Data to Work
There’s a lot of talk about a looming recession or at the very least, a cooling job market. But because of the record investments in PropTech, we probably won’t see an impact on the number of roles to fill. However, the power dynamic is shifting from the job seeker to the hiring company. With a less sunny market ahead, companies will have tougher decisions to make about the pace of hiring and how much they’re willing to spend for new talent, while also trying to keep current employees happy. But what’s not changing is the importance of making key strategic hires – multi-skilled individuals who align with a company’s values and culture.