Imagine you’re at the helm of a high-tech startup. It’s a tough market, but thanks to some savvy venture capital funding, you’ve got the resources for equipment, marketing, and hiring. Now, would you take a chance on a recent graduate eager to join your team?
Here’s the scenario: We’re offering recent college graduates in engineering, marketing, and sales a starting salary of $30,000. While this is below the typical market rate, we’re also granting $25,000 in stock options at $1 per share with a three-year vesting period. If our projections hold and we grow by 50% annually over the next five years, those options could skyrocket in value—potentially reaching $1.45 million in ten years. Plus, every year they stay with us, employees get additional options at a discount.
It’s critical to note that despite the potential financial upside, our company’s future hinges on execution. Ideas alone won’t sustain us; it’s the people who will drive our success. Since we’re not offering top dollar plus options like other companies might, we might not attract the top-tier candidates. We’re looking for someone who believes in our vision as much as we do.
Among the candidates is a recent graduate from Miami University—a school recognized in the top 50 nationwide. She earned her degrees in Psychology and Sociology with honors, boasting a 3.67 GPA, and was actively involved in student organizations and research while working through her summers and school years. However, she’s faced over six months of job rejections, even for positions paying between $25,000 and $30,000, and despite lowering her expectations, has found herself increasingly desperate.
This graduate has shown resilience and determination but expresses frustration with the lack of opportunities despite her academic and extracurricular achievements. She’s even willing to relocate for the right job opportunity. Yet, she worries about the feasibility of working more than 40 hours per week, reflecting a desire for a work-life balance that might not align with the demanding early stages of a startup.
So, as a founder, you face a critical decision. Do you interview her, betting on her potential to grow with your company? Or do you hold out for someone whose credentials and readiness for startup culture are more immediately apparent? Remember, your choice could significantly impact your startup’s trajectory as you race against competitors in a fierce market.
