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How true to do suspect the following hypothesis is: FAANG overpays for top talent they do not need purely to keep it out of the hands of startups and competitor
by BeFlatXIII 5y ago
How true to do suspect the following hypothesis is: FAANG overpays for top talent they do not need purely to keep it out of the hands of startups and competitors who do have a present concrete need for the top-shelf talent pool?
- skohan 5y agoI don't know to what extent that's an explicit strategy, but I would find it plausible to imagine that FAANG could spend a lot less on engineering - both in terms of salaries and head count - to keep their current velocity on product development, but they see a strategic interest in controlling that talent pool which they have an opportunity to exploit via capital advantage.
- ariwilson 5y agoThe other side of this is mentioned in the OP - at scale, if you get top talent for $$$ and can squeeze 1% more revenue out of your products, it's still worth your time.