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Press release below

Grapevine's Report Highlights the Financial Cost of Inequality in Australian Startups

Sydney, Australia - 23.10.24 – Grapevine, a collective born out of and dedicated to exposing and addressing inequality in Australian startups, is marking its first anniversary with the release of a critical new report. The report unveils the financial impact that toxic workplace behaviours—such as harassment, discrimination, and bullying—are having on Australia’s startup ecosystem.

United by online events that transpired after SXSW Sydney 2023, Grapevine has quickly become a well loved platform, collecting and anonymising stories from employees across the tech industry. The report, drawing on data from hundreds of stories submitted, reveals that inequality isn’t just a moral failing—it's a costly business problem.

Key Findings

• 72% of those who experienced discrimination, bullying, or harassment chose to leave their company altogether.
• Only 70% of incidents were escalated, whether formally or informally, and a staggering 96% of those who raised issues informally had negative experiences with senior leaders, HR, or managers.
• Formal reporting remained low, with just 23% of incidents escalated through official channels. The primary reasons? A fear of repercussions (44%) and the overwhelmingly negative response when issues were raised informally.

The Financial Burden of a Failing Culture

The implications for startups are dire. The cost of replacing an employee can be up to 150% of their salary (cite), presenting a significant resource strain—especially for early-stage companies. In an industry where talent retention is paramount, these losses are entirely avoidable.

“When companies neglect their responsibility to create safe and inclusive environments, they aren’t just failing morally—they’re failing financially,” said Misha Garg, one of the co-founder’s of Grapevine. “Our report highlights that startups need to start taking their legal responsibilities under positive duty of care laws seriously to protect and retain talent. It’s not just about doing the right thing; it’s also sound business.”

A Call for Change

Grapevine’s founders, a group of eight women from diverse startup backgrounds, have set out to create a safer, more inclusive working environment. Having all experienced varying degrees of workplace discrimination and harassment, they know that lasting change requires a collective effort. “Systemic change cannot rely on individual acts of courage along, it requires the collective to create a safe, inclusive working environment for all.,” Paloma Newton, added.

As part of its mission to drive positive change, Grapevine is calling for more stories of successful interventions and examples of what great looks like. “We know there are companies getting it right, and we want to amplify those stories to set a new standard,” Garg said.