Earlier quoted context omitted.
The other replies touch on this, but I'm gonna get straight to the point: Does your friend give them actual, meaningful raises as they grow? Is he actually paying competitively to begin with? Because I think if you have this pattern that consistently, it's really likely that either you're underpaying to begin with or your raises suck or are not even present. I love working at small companies. It's by far my preferenc…
That's the weird thing — they (because there are two cofounders) were actually paying very competitive salaries (for the local market). I was impressed to hear what some of them were making. So it's not the money. I think what's going on is that after a year at any job you start to see the problems with the code base, and it starts to get repetitive. It will be like that both in big-co and small-co, but in a differen…
This is only half of what I asked. What about the raises? As someone in another thread chain pointed out, the expected raise from job leaping is maybe 15%. How did the raises your friend gave compare to that?
I'm not saying they have to meet it, but if you're sitting there doling out 1-2% raises per year people are gonna leave when they get what they need from you.
Also, small companies (frankly, especially 'web' companies) are not even remotely immune to demanding people just "do their job and not ask questions" or forcing their employees to sit in the same box for 3 years doing the same thing. Often the lack of room for career growth in perpetually small companies almost demands this.