As a startup founder, I’m constantly struggling to recruit top talent without breaking the bank. We can’t always match market salaries, but we need exceptional (read: expensive) talent in order to build from scratch. How do you recruit a developer making well into six figures, or an experienced salesperson with four kids in private school? At our company, Hatch Apps, we’ve learned to get creative.
7 Compensation Strategies for Cash-Strapped Startups
When you’re a young company, it can be tough to recruit top talent without breaking the bank. And yet you need exceptional (read: expensive) talent in order to build from scratch. There are several strategies you can use when you can’t match market salaries: (1) Offer bonuses for meeting clearly articulated goals. (2) Cover expenses like parking, metro passes, gym memberships, and hardware before taxes. (3) Cushion or reduce your risk with a signing bonus or quarterly retention bonuses. (4) Pitch a prospective hire on the training and professional development opportunities they’ll have to grow and advance in their career at your company. (5) If possible, offer stock options. (6) Generous vacation and leave policies, flex time, remote days, and half-day Fridays in the summer can be attractive perks. (7) Consider a job title a form of compensation and offer a title that’s a step up from the employee’s last gig.