a16z Podcast a16z Podcast: Compensation Isn’t About Paying the Most, It’s About Being Consistent
9 snips
Aug 7, 2015 
Shannon Schiltz, Head of People Practice at a16z, and Than Nguyen, a compensation expert, dive into the intricate world of employee compensation. They explore how a well-defined compensation strategy is crucial for startups looking to attract and retain top talent. The discussion highlights the importance of consistency, transparency, and effective communication in pay structures. Additionally, they compare equity grants and their impact on talent retention, emphasizing that salary alone isn't enough to keep employees engaged and valued.
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Early Compensation Planning
- Develop a compensation philosophy early to avoid future problems.
- Consider both short-term hiring needs and long-term retention.
Inconsistency in Rapid Growth
- Rapid hiring often leads to inconsistent compensation practices.
- Founders prioritize short-term needs, neglecting long-term strategy.
Consistency over Equality
- Focus on compensation consistency rather than equality.
- Differentiate compensation based on role criticality and contribution.