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

[Shigobad2020]

For the new business established I don't think maybe it will easily to pay a experience workers but if new business want a experience workers they must be realdy to pay for it if they have a ability to pay for it. Though, it very good to hire a experience workers to business.

The new business starts up pays more than already established competitors because they want the workers to put in their best effort in order to surpass the well established competitors,

 

[Kubiat-Abasi]

Startups pay more than established enterprises because they want to gain or attract the minds of the audience. It is a start up and that's always a strategy for promotion and marketing awareness.

 

[Sotherefore]

I don't think this is happening ,well I believe that companies that is established and are making constant profit should be the one that should be paying their employees more than the newly establishment business that are not fully trusted.

 

[nimzy]

The reason why startup pays more in salary more than the already established is because they needed the most trained and professional personnel which are very competent enough to helped them achieve their goals and mission effectively.

 

[eLdavis]

I think the best way to beat your competition in hiring the best staff would be to create or give out a better offer than your competition. Which means you should be ready to pay more and spend more. When a person is faced with two options, they tend to go for best

 

[Ezekiel]

An enterpreneur once said and i quote that at the first stage of a business one should expect little or no profit,then at the long run there might be profit,so with this method i will say most start up business spend more just to get into the same page with competitors.

 

[Josan]

Actually start up that set up their priorities may end having paying well as one of the top priorities as such pays well but then may be later in the course of the business not going well they end up reviewing the salary and pay less...

 

[CeeJase]

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?

They may not necessarily have to pay their staff more because they can hire whoever they want but their products must be cheaper at all costs, otherwise they won't sell.

 

[Ub40]

As a new start up you will want customers to know about your existence and the products or services that you offer. So you will do everything possible to attract customers by for instance, offering your goods or services a bit lower price than already existing Sellers.

 

[CeeJase]

The startups that are undertaking must go through a long way to succeed. If they want to emerge immediately, they must make the sacrifice of a high salary but even so, I do not think they can be a competition in this process for large companies. Therefore, they must start with adequate personnel and over time improve workers as needed

Exactly, there is no way they can be able to help the new business to grow with paying big salary at their young age. It's never going to work out and if they force it, the business will crumble.

 

[Adebayonle7]

This is not the case everywhere, some start ups pay well because they want effective services from their employees thereby enhancing quick growth while some start ups even pay poorly with the excuse of them being startups ( i.e. much profits have not been made). In my Country, it is vice versa- the established companies/competitors pay more than the start ups .

 

[Sotherefore]

In most cases they are doing this to encourage their employees to work harder because during the stage is when the company really need to work hard to gain the attention of a lot of prospective consumer , They believe paying their employees well will make their employees to work harder and bring in more people to do business with them.

 

[Godspower]

Most start-ups are able to poach skilled staff from established businesses because they want to hit the ground running. They are also capable of this due to their initial start-up capital.

 

[YERUS]

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?

I think newly established businesses pay higher in salary as a strategy to get the best employees.
This is their way of beating competitors.

 

[Toyoabasi]

There are many skilled labour out there waiting for a company or organisation who would hire them with a better pay package.
Newly established businesses who grab such personnel would be able to beat competitors.

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?

 

[eLdavis]

There are many skilled labour out there waiting for a company or organisation who would hire them with a better pay package.
Newly established businesses who grab such personnel would be able to beat competitors.

In other words it is simply a market strategy on their part to attract experience workers who are looking for greener pastures. Do you think they would be able to keep up with such pay for long?

 

[Toyoabasi]

In other words it is simply a market strategy on their part to attract experience workers who are looking for greener pastures. Do you think they would be able to keep up with such pay for long?

It is possible for them to keep up with the pay for long. But they may not be able to increase the pay beyond what they've offered. That's where problems might set in because in a long run, employees would be expecting an increment in their pay.

 

[Sariana23]

Exactly, there is no way they can be able to help the new business to grow with paying big salary at their young age. It's never going to work out and if they force it, the business will crumble.

Of course, one must have awareness, knowledge, patience and constancy. Things in a venture must be progressive and not to desire them immediately or "force" them as you describe because in this way, generally, the results are negative.

 

[Kaffyfolla]

The reason why newly established company pays higher than that of the existing company is to acquire the best employees in order for the to be famous amongs the competitors companies

 

[akinlolu99]

For the new business set up, I don't think perhaps it will effectively pay accomplished laborers yet assuming another business needs experience laborers they should be prepared to pay for it in the event that they can pay for it. However, it is awesome to recruit experienced laborers for business.