How Startups Can Maximize ROI from the Research Talent Hub (RTH)
In today’s funding environment, every dollar of runway counts. For Hong Kong startups relying on programmes like the Research Talent Hub (RTH) to hire researchers or engineers, getting salary levels right is no longer just an HR decision: It is a funding strategy. Paying the wrong amount can mean losing great talent, missing subsidy coverage, or burning cash too fast. However, with the help of salary benchmarking tools, founders can now plan compensation scientifically, match subsidy caps realistically, and maximize the ROI of every RTH hire.
1. Overview: Why Salary Decisions Matter for Startups Using Research Talent Hub (RTH)
Hiring is often the largest single expense for an early-stage company, sometimes consuming more than 60–70 percent of total monthly burn. Yet many founders still set pay levels based on gut feeling or anecdotal advice from peers.
Even with salary-subsidy programmes like the Research Talent Hub (RTH), startups face a real cashflow risk. RTH requires companies to pay salaries upfront and wait 12–15 months for reimbursement. In addition, the subsidy is only released if the hire stays for at least six months. A wrong hire not only delays milestones but also means the company loses the subsidy entirely while still carrying the full salary cost.
And even when the hire works out, that 12-plus-month funding gap still matters. Unlike other expenses that can be paused when markets tighten, payroll is a fixed commitment. Once you onboard talent, you can’t just turn it off without consequences. Poor forecasting or overpaying can drain runway long before the reimbursement arrives.
That’s why making informed salary decisions is so critical. Understanding what constitutes a fair market rate, how much buffer to set aside for delayed reimbursement, and how salaries fit into your overall runway plan can make the difference between a sustainable hire and a financial setback.
Smart pay isn’t about offering the lowest number, it’s about building a compensation structure that’s realistic, competitive, and aligned with your funding roadmap. For startups using RTH, this balance is what turns a good hire into a strategic investment.
2. What Is the Research Talent Hub (RTH)?
The Research Talent Hub (RTH) is a funding programme administered by Hong Kong’s Innovation and Technology Commission (ITC) under the Innovation and Technology Fund (ITF). It was created to help local startups and technology-driven SMEs hire and retain research talent to support R&D work in Hong Kong
Purpose and Background
The RTH’s goal is simple: To make it easier for startups to bring in the right people for their R&D work. It supports employers by covering part of the salaries of eligible researchers, helping more STEM graduates and postgraduates start their careers in innovation. In short, RTH lowers the financial barrier for young companies that want to build strong technical teams.
Who Can Apply
RTH funding is available for:
- Incubatees and tenants of the Hong Kong Science & Technology Parks Corporation (HKSTP) and Cyberport (under the RTH-SPC stream).
- Companies conducting R&D activities in Hong Kong, or those receiving support under other ITF programmes such as the Enterprise Support Scheme (ESS) or Partnership Research Programme (PRP)
Applicants must demonstrate that their business is technology-intensive, with R&D work being a substantial part of their operations. Routine administrative or market-oriented work does not qualify as R&D under RTH
Talent Eligibility
The programme supports hires who:
- Hold a bachelor’s, master’s, or doctoral degree in a STEM-related discipline.
- Are Hong Kong permanent residents or legally permitted to work in Hong Kong.
- Work full-time on R&D-related duties for at least six consecutive months, as the subsidy will not be disbursed if employment ends before that period
Funding and Reimbursement
RTH covers part of the salary costs, with caps depending on the researcher’s academic qualification:
- Bachelor’s degree: up to HK$20,000/month
- Master’s degree: up to HK$23,000/month
- Doctoral degree: up to HK$35,000/month, plus an additional HK$10,000/month living allowance
The funding is reimbursed only after progress reports are approved, typically every 6-8 months. In practice, startups need to cover salaries upfront for 12–15 months before receiving the subsidy
Why It Matters for Startups
For early-stage startups, RTH can be a great way to attract quality R&D talent without taking on the full cost immediately. But it also comes with cashflow challenges and risks:
- If the hire leaves before six months, the company won’t receive any subsidy.
- The 12–15 month delay in reimbursement means founders need solid financial planning to bridge the gap.
- Salary decisions made at the start - too high or too low would directly affect both funding ROI and team stability.
In short, RTH can be a powerful support tool but only when combined with careful hiring, budgeting, and salary planning.
3. How Informed Salary Decisions Maximize RTH ROI
When it comes to the Research Talent Hub (RTH), the most critical decision isn’t about the paperwork: It’s about who you hire and what you pay them. Hiring the right person at the right salary determines whether the subsidy becomes a growth enabler or a financial burden.
RTH can be a powerful way to bring in R&D expertise that most startups couldn’t otherwise afford. But the programme only works if the hire truly drives progress in your product or technology roadmap and if their salary fits your company’s long-term financial rhythm. Paying too high drains runway; paying too low risks losing the person before milestones are reached. Either way, the subsidy can’t make up for a mismatch between capability, pay level, and retention.
That’s why founders need to treat salary planning as part of the hiring strategy, not just a budgeting exercise. Understanding the market rate for similar R&D roles helps startups design offers that are both competitive and sustainable. The goal isn’t to squeeze salaries under the RTH cap. It’s to ensure the role attracts someone capable of delivering measurable R&D outcomes over the 12–15 months before reimbursement arrives.
Example:
A startup plans to hire a Research Assistant. Market data suggests a fair salary of around HK$27,000 per month. With RTH funding for a master’s degree capped at HK$23,000, the company covers the remaining HK$4,000 per month. If that same company had set the pay at HK$35,000 to compete with corporates, its cashflow would tighten long before reimbursement. On the other hand, offering only HK$20,000 might have failed to attract the right candidate which wastes months of development time.
Informed salary decisions are eventually about maximizing return on talent. When the right person is hired at the right level, RTH funding doesn’t just subsidize cost, it multiplies impact.
4. The Cost of Not Benchmarking
Without a clear view of what the market pays, salary decisions can easily miss the mark and under the Research Talent Hub (RTH), that can have lasting consequences. The risk isn’t just losing subsidy money; it’s hiring the wrong person, or losing the right one too soon.
Overpaying: When Good Intentions Hurt Runway
In a competitive talent market, it’s tempting to offer a higher salary to secure a candidate quickly. But RTH funding is capped and any amount above the limit comes entirely out of the startup’s cashflow.
Overpaying doesn’t just reduce ROI; it can shorten the company’s runway by months. Once the salary is locked in, it becomes a fixed expense that can’t be scaled back easily, even if the market turns or milestones are delayed. The result is more financial pressure and less flexibility to reinvest in product development or customer acquisition.
Underpaying: When “Saving” Costs More
At the other extreme, offering below-market pay might seem safe on paper, but it can quietly derail progress. Talented researchers who feel undervalued are more likely to leave before the six-month minimum needed for reimbursement which leaves the company to absorb the entire cost with no subsidy.
Even if they stay, low pay can affect morale and output. R&D work requires creativity and problem-solving; both are hard to sustain when team members feel undercompensated. What started as a cost-saving decision can easily turn into delays, missed milestones, and higher turnover costs.
In short, salary benchmarking is not about paying more and it’s about paying right. Getting that balance correct allows RTH to do what it’s meant to do: give startups the breathing room to innovate, grow, and scale with the right people in place.
5. Choosing the Right Reference Points for Salary Planning
Under the Research Talent Hub (RTH), salary planning isn’t just a budgeting exercise. It’s part of showing that your hiring process is reasonable, transparent, and compliant. The programme expects startups to pay a fair market rate for the role, but also to follow proper procurement and documentation procedures, just like other funding schemes such as BUD.
In practice, this means you should be able to demonstrate how you determined the salary level and why it’s aligned with the market. RTH applications may require supporting documents or justifications, especially when the proposed salary is near or above the subsidy cap.
Good data is essential but startups don’t need expensive systems to get it. When planning RTH hires, founders can combine several credible reference points to build a balanced and defensible view of market pay:
- Public job platforms such as JobsDB, CTgoodjobs, or LinkedIn to understand current salary ranges for similar roles.
- Industry or founder communities: for peer benchmarks and informal insights specific to your technology field.
- Localized salary databases such as NAHC’s startup salary benchmark, which focuses on Hong Kong’s innovation ecosystem and provides structured, role-based data for founders building technical teams.
- Government and ecosystem reports: many publish reference data for STEM roles and local pay trends.
The key is to document the rationale using the template interview record provided by RTH about what data sources were used, how you decided on the final number, and how it fits within RTH’s salary cap. This serves not only as internal governance, but also as proof that the hiring followed fair and transparent procurement principles.
From a compliance standpoint, this kind of preparation reduces the risk of funding disputes or delayed reimbursement. It also signals to reviewers that your company treats public funding responsibly: A quality that strengthens both your RTH application and future funding prospects.
In short, salary benchmarking under RTH isn’t just about getting the number right. It’s about showing that your hiring process is fair, well-documented, and compliant from the start.
6. Key Takeaways: Pay Right, Hire Smart, Fund Smart
The Research Talent Hub (RTH) can be a strong advantage for startups but only if it’s used strategically. The programme doesn’t just reward innovation; it rewards discipline. Founders who plan salaries thoughtfully, document their decisions, and align hiring with long-term goals get the most out of the subsidy.
Here’s what matters most:
✅ Hire the right person, at the right salary.
The success of RTH funding depends less on paperwork and more on people. A well-chosen hire who delivers results will always bring a higher return than a rushed decision made to fill a quota.
✅ Benchmark before you hire.
Salary benchmarking isn’t just best practice. It’s part of compliance. RTH, like other government funding programmes (such as BUD or ESS), expects startups to justify pay levels with credible market data and transparent documentation.
✅ Plan for the 12–15 month reimbursement gap.
RTH funding arrives after proof of payment and reporting. Strong cashflow planning ensures you can support salaries upfront without straining your runway.
✅ Build a fair, defensible compensation structure.
Set pay levels that make sense for both the business and the talent. It shows reviewers that you understand market dynamics and value accountability in how public funding is used.
When founders treat hiring as part of their funding strategy and not separate from it. Programmes like RTH become true growth support and not a burden.
Need help preparing your RTH application or planning your next hire under a funding programme
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