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by 7Figures2Commas
3917 days ago
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Why even offer equity at all? If you're profitable and able to offer cash bonuses and raises, why not use alternative retention tools? Do you offer a 401(k) with generous company match? Do you have a profit sharing plan? Profit sharing into a 401(k) can be especially appealing. While I obviously don't know anything about what your company does and what its financials look like, if I was a prospective employee, the fact that you're sub 10 employees at seven years in would lead me to conclude that you're not the kind of high-growth company for which 0.1 - 0.25% equity has any chance of translating to a really big payout. So why pretend? I'd find it far more appealing if your compensation package was realistic/honest about where you're at as a company. |
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As for the seven years in with 10 employees, definitely valid point. However, I always make sure to point out to candidates that we were 3 employees 2 years ago and are now getting significant traction with bigger clients. We are in an extremely slow moving B2B industry so it takes significant time to get that initial traction. It is very much a referral based sales process and potential customers like to bucket themselves based on size. Effectively, we've had to work our way up the food chain to get to the bigger fish. We expect to be 20 by the end of next year, so it carries more weight now than it would have 2 years ago. This is the same reason we even foresee a sale event in the next 2 - 3 years with the growth we've had over the last 18 months.
Perhaps that's stockholm syndrome speaking (kidding) :p