
How to Pay Startup Employees Fairly - jprocopio
https://medium.com/@jproco/how-to-pay-startup-employees-fairly-7ccd7bef52a9
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scarface74
How is this advice any different than the same old thing every company does?

 _What do you want to be making at your next job? What is the minimum you’d
take and still come to work happy every day?_

That is still based on negotiating ability. I have no problem coming across as
a “mercenary”. I go to work everyday to make money. The same reason he started
a business.

~~~
jprocopio
Good points. I hope I addressed them in the post, but thanks for the chance to
summarize them here.

So the difference is this: Most companies, the vast majority, including
startups, fall into a salary schedule based on ranges and grades, which serves
nobody except the books. It's my belief that job-hopping is so prevalent when
companies tell talent they can't pay them anymore because they've hit some
sort of artificial ceiling. I'm calling for an individual assessment in
salary, from the very beginning (i.e. startups) to be able to get max value.
IOW -- pay the employee what they need and make sure we get value back for
that money.

Nothing wrong with being a merc. I've been a merc. But I don't do what I do
just for the money. If you do, that's great, that's your motivation and you
probably return that with tons extra in your output. So when your employer
comes to you and says, "Hey, we can't give you more money but here's a fancy
title." That's NOT you, right? They should be aware of your motivation and pay
you accordingly.

~~~
scarface74
I hate to be blunt. But your bio says.

 _I’m a multi-exit, multi-failure entrepreneur. Building Spiffy, sold
Automated Insights, sold ExitEvent, built Intrepid Media._

Your history for starting businesses is to sell them and to make money from
them. There is nothing wrong with that but don’t pretend that you’re doing
this to feed starving children in Africa.

But yes, after being the dev lead at a previous company. I negotiated at my
current job _not_ to be a team lead. I have no interest in titles or official
leadership positions. I would rather mentor and advise from within a team.

~~~
jprocopio
No, please, be blunt. This is all honest. Let me put it this way. In my 20s, I
was 100% money driven. In my 30s, probably 75%, now in my 40s, about 50%. I'm
not saying I want to feed starving children in Africa. That'd be a good thing,
but my thing is different. I get offers, not a ton, but some, that are for
more money, but I'd have to give up things I care about more. Time with my
family, doing what I love to do, working with people I might not want to work
with, etc. Everyone has these.

So now why is this a thing and not just me-- If you look at millennials,
they're nowhere near as money driven as my generation or the one before mine.
I've seen it time and again. It's not black and white -- there are some that
are mercs, and the ones that aren't are not 100% saints, but the mean is
shifting away from money.

Thanks for the feedback.

~~~
scarface74
Even so, from your side, your motivation from being in business is for your
own work life balance and to further your goals - which are not necessarily
financial.

But unless I as an employee think that I’m doing something for a higher
calling, what motivation do I have to work for your company besides either
making more money now, or to learn skills where I can leave and make more
money later? In other words, I may be willing to make less for a non profit
but not for a for profit business.

And that’s not meant to be judgemental. You would be hiring me because you can
arbitrage my talents and pay me less than you can profit from me. On the other
hand, I would work for you to get the most money I could and at the same time
understanding that you are profiting off of me in exchange for me not having
to worry about all of the headaches of running a business. I think negotiating
is about coming up with a mutually agreeable amount.

~~~
jprocopio
I think we agree on those points. Most people don't get to negotiate,
especially younger people earlier in their careers, especially when it comes
to things like incentives, base/bonus, and milestones. If you negotiate,
you're the exception. I know I am.

