Non-monetary benefits such as independence, autonomy and the ability to work on innovative technologies are among the key selling points for talented scientists and engineers who spurn working for a bigger technology firm in favor of a riskier startup.
Fledgling technology startups need to hire skilled scientists and engineers to bring their cutting-edge products from the proverbial Silicon Valley garage to the market. But to attract the best and the brightest, startups also must routinely compete with established firms for top talent.
"Certain workers are willing to take a job for lower pay in exchange for other benefits such as working for a smaller firm and feeling like they're contributing to the creation of something new and novel," he said."For some high-ability tech workers, there's more significance to being employee number 20 than employee number 2,000."
"There's a lot of evidence using U.S. Census and other administrative data that shows that employees at small firms are paid less, which has been interpreted as startups not being able to attract high-ability people," Roach said."But we found that startups are able to recruit high-ability workers despite paying their new hires approximately 20% less than established firms."
"Some high-ability workers will have a preference for being an employee in a really big company where they know what they're going to do and what their job is going to be," he said."But it's also true that some high-ability workers prefer a riskier startup environment that offers more autonomy and more interesting work despite lower pay.
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