Help for Startups Hiring New Employees: Negotiation and Financial Considerations

 When hiring new employees for your startup, there are several things you should consider negotiating:

  • Salary: Determine the budget you have available for the position and be prepared to negotiate based on the candidate's experience and value they will bring to the company. Be aware of the cost of living for the new hire as well as the market rate for their general duties. Employees that are not worried about money because you are paying them more than enough will work harder and be more loyal. It will also save the company time and money when they don't leave. The budget has to agree no matter what, but don't just be looking for the cheapest deal possible.
  • Benefits: Offer a competitive benefits package, including things like health insurance, vacation time, and retirement plans.
  • Equity: If you are a small startup, you may not be able to offer a high salary. In this case, offering equity in the company can be a good way to attract top talent. This type of compensation will also give employees a sense that what they are doing is increasing the value of their own equity, so by working harder/better they are directly making themselves more money in the long run.
  • Work schedule: Be flexible and open to negotiating a work schedule that works for both you and the employee. Forget traditional work styles, the most important thing is that the worker is getting things done that they need to get done and doing the job. As long as they are doing that, the time it takes is not so relevant and the focus is on being effective.

In order to negotiate well, it's important to be prepared and do your research. Know what you can afford to offer and be open to finding a mutually beneficial agreement. It's also a good idea to be transparent about your expectations and the value the employee will bring to the company.

Templates to Help:

Article found in Startups.