Startups have always struggled to compete with big tech companies when it comes to offering high salaries. However, the AI race has intensified this competition, with companies like Meta and OpenAI willing to pay million-dollar salaries to attract top AI talent. This has widened the compensation gap even further, making it challenging for early-stage startups to attract and retain top talent.
Despite these challenges, founders and experts at JS Disrupt 2025 believe that startups can still create competitive compensation packages by developing a generous, fair, and flexible strategy. Yin Wu, the co-founder and CEO of Pulley, emphasized that startups should not try to directly compete with big tech companies, as they attract different types of candidates. Instead, startups should focus on being as charitable as possible with their compensation packages, especially when it comes to equity.
Wu suggested that startups should be more generous than they think they should be with equity, as it can be a crucial factor in attracting and retaining talent. Randi Jakubowitz, the head of talent at 645 Ventures, echoed this sentiment, emphasizing the importance of setting clear goals and holding employees accountable for their performance.
The panelists also highlighted the importance of setting fair and transparent compensation and equity strategies from the beginning. Rebecca Lee Whiting, founder of Epigram Legal, emphasized that having these standards in place can help companies avoid legal pitfalls, such as unequal pay based on gender.
Overall, the consensus among the panelists was that as long as founders approach building their compensation packages with fairness and transparency, they can always adjust and refine their strategies as the company grows. It’s essential to focus on what will incentivize potential hires and not to strive for perfection from the start. By building a solid foundation for compensation packages, startups can set themselves up for success in attracting and retaining top talent in a competitive market.
