Why do startups pay more in salary than an established competitor?

[Spicywilfred]

Start up company pays higher than an established company because start ups believes that a well payed employee brings the best to the table and they can't afford to loose the quality of the company. But an established company has a name for itself already so most of them do not put in much effort in salary payment. Rather they just change employees whoses ready to accept the salary the way it is and preach determination to them..

 

[Setho]

If you want your business to start at very fast pace and wade of competition within a short time then you should steal employees from top companies or from the labor our market and one of the ways to do this is to offer them very juicy salaries and inventives to lure them away

 

[Nurudeen]

Startup business pay more salary than established Business just because they are new and they will need to fund their feet in any INDUSTRY they are and I believe they can't do this with inexperienced employee so they will need to attract people with good salary

 

[Saqibraza]

The value of each depends on the stage of a company's growth, the role, and an employee's previous experience. A good rule of thumb, though, is this: The earlier a stage the company is in, the lower the salary and benefits will be, but the higher the equity will be.

 

[Psalmseen]

Start ups businesses will definitely want the best hands to work for them because they'll want to beat the standards of their competitors or of the established businesses and by so doing they tend to pay more

 

[mubinadaddy]

Startup company pays their employees well in other to bring out the best of their employees and also for them to be focus and not look outside anymore or try to search another job. I look at it as away of motivation.

 

[Mostee501]

A startup needs to spend more in the labour market,in other not to wait along time to become established,plus more pay motivates more work force.

 

[Adventurer]

Newly established businesses always want to get the best employees in the labour market. To beat established competitors, they need to offer better Pay package. Hiring a skilled labour with all necessary skill set goes a long way in helping a newly established business achieve their goals at start of the business.

Are there other ways to beat competition in hiring a skilled labour?

That's the only way I know, as a startup, your aim is to try and beat your competitors and one way to this is by hiring the best staff,the only way to lure them to your organization is by offering them a higher pay than the standard

 

[Victor001]

This is predominant amongst big companies as compared to local startups, incentives, good lifestyle and welfare packages are self boosters.

 

[Ehizzy1]

The skilled employee could contribute positively to the growth of your business, those start up business could take to improve their business

 

[Dowenship]

Newly established businesses always want to get the best employees in the labour market. To beat established competitors, they need to offer better Pay package. Hiring a skilled labour with all necessary skill set goes a long way in helping a newly established business achieve their goals at start of the business.

Are there other ways to beat competition in hiring a skilled labour?

established business that has gotten to the level of employing and competing with others are not new but they might start for few years and they hand brown within a short period of time...

 

[Sheyemanu]

Well, concerning your question on why start ups pay a whole lot more in salary when compared to their competitors, I have to say that what they are trying to do is attract the best employees available in the job market so as to give them a boost

 

[Josephjossy]

Because they are trying to make the company work. Some startup need good workers and they need to keep them in the company so they offer more money. But some established company thinks that they have gain the Fame so they can pay any amount they want

 

[Chibson]

The reason start-ups pay more than established competitor is quite simple, a new business needs big money inorder to succeed. While established businesses already have authority.

 

[GIFTMICHAEL]

They want to establish themselves, gain trust that's why they high during the starting as a business community. But as time goes, when more workers come in, salary level can be slashed to do others.

 

[Setfragil]

Startup businesses always want to enter the business markets with the best products. They believed this can be achieved by employing people who have good education, nice work experience and expertise. They employ these set of people and pays good salary.

 

[Shigobad2020]

Start ups pay more in salary than established competitor because The newly company need the best employee and they always wants to Stand out and compete with the other company , so they boost the moral of their staffs by paying them a robust salary.

 

[Patrik]

that's a must, so they gain more people over their competitors and slowly increase their payments after a short time, i don't think it is any bad to do so because as i said at the beginning, it's a must

 

[Alexandoy]

I am surprised with this topic because in our country start ups usually hire with a lower salary than the big corporations that are already well-established. In trying to get experienced employee it can be said that they can offer a bigger salary to pirate the guy but it can only be 1 or 2 employees and not so many. A start up has no income yet so I don't think they will spend so much for the salaries.

 

[Kelly5]

I find that to be a difficult thing to be happening because as a start up they will want to be sure of their business environment first before saying they want to pay their staffs more than what their competitors will ordinarily pay. I don't think startup business pay more to staff