TechCrunch Startup News How startups can lure good talent fairly without big tech bank accounts
Nov 10, 2025
The podcast dives into how startups can attract top talent without competing with big tech salaries. Industry experts argue against matching pay, instead advocating for generous equity options. They emphasize the importance of setting clear performance goals tied to compensation and building a fair, flexible pay framework from the start. The discussion also highlights standardized pay to avoid legal issues and how tailored incentives can sway different candidate types. Overall, it's a roadmap for startups to cultivate a motivated workforce.
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Startups Should Compete With Equity, Not Salaries
- Startups can't and shouldn't try to match big tech salaries when hiring talent.
- Instead, they can compete by being generous and strategic with equity to attract suitable candidates.
Err On The Side Of Generosity With Equity
- Be more generous with equity than you initially think when early on.
- You likely won't regret granting more if the company becomes successful.
Tie Compensation To Clear Performance Goals
- Set clear performance goals tied to compensation when making competitive offers.
- Hold hires accountable and understand vesting cliffs to avoid losing leverage if someone underperforms.