3 ms·
Here are some options, but notice how controversial they are: 1. Employ younger, inexperienced people and train them 2. Import immigrant developers 3. Hire p
by inputcoffee 10y ago
Here are some options, but notice how controversial they are:
1. Employ younger, inexperienced people and train them
2. Import immigrant developers
3. Hire people in different geographies
As an alternative, why not:
1. Hire older workers
2. Hire the unemployed American workers
3. Hire in America?
Well, because it costs more? Does it?
I don't know, I am just trying to open up the conversation here.
Edit: made language more neutral
- throwaway2016a 10y agoWe have had high success with #1.
- alexc05 10y agonow are you referring to #1 (younger + training) or #1 (older)?
- throwaway2016a 10y agoYounger + training. We've tried the latter too but have not been even remotely as successful. The job requires some mental elasticity and they older developers we tried it with were a bit too set in their ways. It didn't make sense given the market since at least here older developers are pretty well employed so the salary is still high. But I am more than willing to try it again.
- WalterSear 10y agoYes, it costs more.
- inputcoffee 10y agoSo then the two optional responses are: 1. If the startup doesn't have the money to pay more, what should it do? 2. If a startup decides not to opt for any of the options, and the competitors do, what should it do? -- Note: the competitor can be in India, for example.
- WalterSear 10y agoIncrease the equity for early employees by roughly an order of magnitude and aggressively protect their, still relatively small piece of pie, from dilution.
- st3v3r 10y agoAgreed. If you dilute a single employee's equity by any amount, you do not deserve to have that employee. Period.
- WalterSear 10y agoDilution is inherent aspect of equity financing. However, due to the extremely small amount of equity that employees receive in exchange for such a large amount of their overall resources, the effect on their personal outcome is disproportionately affected by the dilution that occurs with series. To the point where the risk and reward involved make it a losing proposition. As a rule of thumb, I anticipate the value of employee options to diminish by an order of magnitude between the angel round and IPO/sale. This would make an initial stake of 0.5% in a company that sells for 100 million dollars to be worth $50,000, before taxes.