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Pay them above market so they don't need to worry about making more elsewhere.
But how can they all be paid 'above market'? Is that like 90% of drivers being above average?
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Paying management less than they deserve would not encourage them to stay hungry. But paying them more than they deserve based on market dynamics could possibly cause them to lose motivation. This is definitely not a rule that occurs 100% of the time, but my point is its something to be aware of, and salaries need to be more transparent so better-educated salary decisions can be made (for all participants of the tech…
Do you have any proof of that, other than your own anecdotal evidence?
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Why? If I got 50 million dollars in funding or 400k, I'd still probably pay myself only what I need to survive/present myself and pour as much into the business as possible, at least until profitability and even then my salary would remain low until profitability was maintained and began to increase rather than be an issue. Then again, I don't have a family.
That is a very bad strategy.... You should study or read up on startup stories. It's risk management.
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Paying management less than they deserve would not encourage them to stay hungry. But paying them more than they deserve based on market dynamics could possibly cause them to lose motivation. This is definitely not a rule that occurs 100% of the time, but my point is its something to be aware of, and salaries need to be more transparent so better-educated salary decisions can be made (for all participants of the tech…
Do you have any proof of that, other than your own anecdotal evidence?
Meanwhile I have no problem at all hiring the best and the brightest. It's super easy to find good people and hire them and how to do so is not a secret at all.
"But if you offer too much compensation, management and employees may begin to feel fat and happy and lose the motivation to maximize long-term value for shareholders." IMO (and while I can't speak to the management side of it), this displays a horrifying misunderstanding of the mindset of the technical people you want to hire and pay well. As an experienced and driven programmer, you hire me and pay me well so that…
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But how can they all be paid 'above market'? Is that like 90% of drivers being above average?
This works because most managers and founders aren't smart enough to pay above market.
It's like hiring the best developers possible - obviously not everyone can hire the best devs, but it doesn't mean you shouldn't try to do it anyway.
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That is a very bad strategy.... You should study or read up on startup stories. It's risk management.
Exactly. There's a time element to this. It takes 7-11 years for a startup to go public. Your life changes during that time and so does the relative impact of your salary on runway.
It's not about the amount you raise, it's about what stage your company is in. That's my real point there.
"But if you offer too much compensation, management and employees may begin to feel fat and happy and lose the motivation to maximize long-term value for shareholders." God forbid if your employees are happy. In all seriousness, I don't even remotely understand this mindset. Why would paying your employees less than they deserve or less than is optimal encourage them to "stay hungry." If anything, this is going to de…
Paying management less than they deserve would not encourage them to stay hungry. But paying them more than they deserve based on market dynamics could possibly cause them to lose motivation. This is definitely not a rule that occurs 100% of the time, but my point is its something to be aware of, and salaries need to be more transparent so better-educated salary decisions can be made (for all participants of the tech…