now in silicon valley, the value of talent? This year, a start-up company with $10 million wants to find a new CEO to pick up the B round of funding, and to provide $450000 (5% of the revenue) as a reward. Another rapidly growing up and upcoming startups, is also looking for a CEO to lead the company’s IPO. In addition to a huge pay packages, the board of directors of the company is willing to provide a $1 million signing fee. Just signed documents conform to the requirements of the candidates, two and more than a year of time to get the money.
but their proposal was turned down.
these are just my from Brad Stadler to listen to some of the story. He is now a data-driven headhunting company founder and managing director of True. “Since 1999, we haven’t seen this kind of situation.” He pointed out that executives signing bonus before start-up unlisted can have so many has always been very rare, but now this phenomenon began to rapidly in popularity. Stadler should know, since he started hiring in 1999, began to close to the highest point of the dotcom bubble.
last week, Bill Gurley to start-up the comment high burn rate has aroused heated debate, with a lot of stories about startup valuations, and if investment market conditions change, the risk of these start-ups will face. In the past few months, venture capital has flowed into the system, improve the valuation and fund-raising, have also brought a startup resources more than ever, to pay for the cost of the company growth.
as capital injection in the ecosystem, the salary of executives is also growing sharply. Such as True, during the period of 2013 to June 2014, the CEO of wages rose by 11%, the CFO and director of sales and on the remuneration received 14% and 13% respectively. It is important to note that in the same period, the vice President of engineering of salary increase is not big.
these changes is very big, also overturns the concept of our past, how to define a start-up and start-up to a new understanding of risk. Once upon a time, the founder and director in a garage or office sweat profusely, looking forward to one day be able to with the created products as a miracle. Every day they live a life of boring toil, but with a minimum salary. And now, that’s all changed. They are in the center of the most competitive labor market in the world, how many a cup of soup to completely decided by themselves.
in the Labour market, more and more well-funded start-up companies are competing for experienced executives, but there is only the number of executives, after all, is limited, so at the end of the day, wages have the function of attracting talent. As executives to improve, they are more demanding match the level of listed companies.
salaries rise are changing the interested in start-ups, director of the type. Because venture capitalists in pursuit of growth, is willing to provide the high salary, start-up companies to target new markets, to attract talents. Since the start-up companies and big technology companies such as Microsoft, Google), salary has no gap between start-ups from big technology companies poach talent has become a distant past.
as employees comfortably in his career from the big companies to small companies, for the past exists in technical labor market bifurcation is now gradually blurred. It’s good for both sides, because startups can benefit from the experience of a major corporation, and big companies can obtain the spontaneity of entrepreneurial employees and creativity.
even more remarkable is that startups can attract talents all over the country now, even outside the tech industry risk-averse executives, if in the past, they never will startups in the career path of the question. Graduate of harvard business school, for example, they were seen as the manager of the most talented young prospects on the market today. Since 2006, the rate of graduates in science and technology companies have been hovering at 7% in 2013, but the jump to 18%, and in the short term is unlikely to fall.
even the people who has other plans on the career, also attracted by top start-up the lucrative contracts. Wall Street used to be the paradise of the greedy bankers, now can only see a large number of talents to San Francisco and other technical center. Washington also suffered the loss of talent, senior politicians to silicon valley. Had to help the Obama campaign, for example, the President’s senior adviser David Plouffe (David’s love) recently joined Uber, responsible for policy and strategic issues, help the company launched a political campaign of traditional taxi company.
is also increasingly fierce competition for talent for the next generation of executives had a trickle-down effect (trickle down effect). From True Stadler emphasized that “in the past, the CEO and director of class consistent want to recruit experienced people, but the market competition is too big, recruit the possibility that this kind of person is very small. Now, the company will seek to have great potential and the desire to do better.”
take into account the current role as the core technology in public and private life, the ability to attract top talent undoubtedly is more important than ever before. Based on the preference for elite in silicon valley, we should be in the region has been able to attract such a high-quality talents and clap.
but the risk is a sword, and have an effect on both sides. It will make many elite before startup, may also cut down the passion of applicants, no longer keen to put products into cash. Risk can also play a role specification, to ensure that both sides of Labour and capital are placed in absolutely effective ways as possible.
many people still have such doubt, whether the new value of the introduced region is sustainable. Seems to temptation and greed are increasingly instead of the region’s engineers have done decades of work products and high technology. In simple terms, is a silicon valley culture needs to be protected, or that evolution is a positive meaning?
in view of the founder of traditional missionaries in silicon valley, for example. We always used to mythology founder, for good reason – is extremely difficult to set up a company in the past, only a small number of people will be able to support the, struggling to survive every day, until one day succeed.
but now, to start a company can’t easily again, and cost is lower. Recently, Google for entrepreneurial companies provide up to $100000 in Google cloud service credit lines, reduce the cost of start-up companies. With the increase of risk investment, enterprise risk of money also drops.
although the risk of early gradually disappeared, but the founders and employees in a fair and recognition on topics such as tension is increasing. Startup company employees have more opportunity cost. But want to find a can help companies grow executives are more and more difficult. And executives also in automatic resign. An engineer of my friends told me this week, their startup in every hiring on hard struggle, despite the good products and sufficient funds, staff has been lost.
another big change is not equal. Within the region one of the main historical influence is the mainstream culture. In many ways, it emphasizes the equality as the basic principles of society. But executives rises is increased the region increasingly serious employment situation of inequality.
in executive pay a fast growth at the same time, the region’s most iconic technology company is full of struggle, in collusion with engineers and product managers have to depress wages for executives. This is more common in the San Francisco bay area, the inequality level so high, that silicon valley can’t distinguish with some sub-saharan countries, at least in some ways.
is very popular now talking about the spirit of struggle in San Francisco, struggle is an artist and creative consultant, on the other side is a science and technology personnel in start-up companies. But now also have a similar struggle, is a representative of fame, wealth and signed a $1 million fee in silicon valley, one is a love of technology, product and aspirant and self (may occasionally show fame) of silicon valley. Call it a competition between bankers and craftsmen. But in the end, is our love of creating promoted our success, is not risk investment dollars. We should have been convinced.