We just shortlisted a Tech Cofounder on our Early stage Self funded Tech Marketplace startup.Hes good on the skill set but we are not sure yet on the ‘compatibility’ part- which we are counting on as very important as well for the core team. Whats the Best way to go forward with this: testing the ‘compatibility’ with salary for say 2-3 months before handing equities or straight away giving out equities? Affordability shouldn’t be an issue since we are highly particular on selection of the core team.
Hello I am Priyanka.
To understand this you have to go in detail.
Determining the Bottom of the Scale
So now you know the most you'll pay. The next step is to figure out the least you'll pay. And that's where the market comes in. Market rates set candidates' expectations. Sometimes, the market underprices value. Truly excellent knowledge workers do ten times the work of merely good ones, but they're only paid 20 to 30 percent more.
Deciding How You'll Pay
So once you know what the job is worth and what your candidates will expect, you've got to decide how you'll pay. Will you offer a fixed salary or hourly pay? Sometimes the choice is yours, but often, there's a common perception among employees that certain positions will pay one way or the other.
Protect equity state
You’ll want to have an attorney review all your funding documents so that you understand what you actually own and what you’re sharing. While each round of investment presents a new valuation, you’ll need to ensure that there are minimal - if any - restrictions on your equity, such as vesting periods that give you less than what you might think you own.
Further queries consult me.
Answered 6 years ago
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