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Hmm, I am not sure I agree with the second part of your statement for a few reasons. E.g. 1. Relative utility of the upside. It is not the absolute value of
by eladgil 15y ago
Hmm, I am not sure I agree with the second part of your statement for a few reasons. E.g.
1. Relative utility of the upside. It is not the absolute value of the outcome that matters per person, but rather the relative value. http://en.wikipedia.org/wiki/Utility http://en.wikipedia.org/wiki/Utility
2. Other incentives (fun, interesting work, wanting the "startup experience" etc.). These dont always exist, but often they do and people value them.
3. Passion for making an impact. Some products are really exciting to work on. Not everyone is in it just for the money.
I think in general my personal bias would not be to hire people who think purely in economic terms about e.g. their work ethic. Obviously, you want all the people who take the risk to work with you at a startup to do extremely well, but you don't want people whose primary thought is "well, if I make 2X more I will work 2X harder" as there are lots of ups and downs at a startup, and sometimes it is unclear what the outcome will be.
- sid6376 15y agoI am interested in knowing what do you mean when you say you do not agree with the second part of the statement. Do you mean, just because I want some of the things that you listed above, say the startup experience, does that mean I should be working as hard as the founders?
- eladgil 15y agoI mean: When I was working at other people's startups, I never thought "boy, the founders have way more equity then me, I should slack off or not work as hard because of that". I always tried to do my best at whatever job I had, and would want to hire people with the same attitude.
- klochner 15y agoYes, you want people who are passionate and want to work hard, but there are sacrifices made to work 18 hour days, and people are much more likely to make those sacrifices when their upside is in the millions rather than the thousands. The difference between a 60 hour week and an 80 hour week is pretty significant in terms of personal sacrifice. No one says "I'm going to slack off", it's just that the founders are inherently (financially) more motivated. If the money isn't a motivation, then the founders should have no problem giving out most of their own equity.
- sid6376 15y agoklochner made my point more eloquently than I could. I am the first employee of an early stage start-up and I think I have put in the hard work. However, because I work at a startup, does not mean that I put on other things at hold, more importantly, my development as an engineer. I had a holiday today and I spent the entire day working on SICP. There was a part of me which kept saying I should also probably do some work. So, maybe, I am just trying to justify today to myself.