Are start-up employee's usually consultants/contracted?

https://news.ycombinator.com/item?id=2763298

by jivejones • 15 years ago

1 3 15 years ago

news.ycombinator.com

Is it typical when being hired at a Start-up to not be a full-time employee but a monthly contracted worker?

jperras• 15 years ago

It depends quite a bit on what the terms are. I spent a few years doing consulting/contracting for early to mid-stage startups, and every one of them had slightly different terms.

Most startups in my experience, however, prefer to have full-time employees. The opportunity cost of having an employee leave the project in the early phases is often times devastating, and contractors/consultants are more likely to jump ship if something more lucrative comes along. The same can be said of "real" employees, but you're often in a better position to make a more compelling offer (i.e. stock, options, benefits, etc.) to the latter rather than the former.

jivejones• 15 years ago

in this case everyone is hired as a consultant/contract worker.

raarky• 15 years ago

Most of the startups I've seen try to hire core full-time employees that get lower salaries + options.

I have seen a few rare instances where a consultant is hired but usually startups can't afford the consultant rates hence the options

Are start-up employee's usually consultants/contracted?

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