Is it true that small companies can’t retain employees?
This is a very popular topic on an online community, share my opinion:
Small companies can retain people.
But they can only retain a few employee in core management positions.
What is the most important thing in a company?
The answer definitely Is the share. The people who have the opportunity to share the shares of the talent is really with the company with the life of the people, and these people must be a minority, because the shares can be divided is a minority.
Generally speaking, only about 20% of the company’s shares are reserved for employees, and this 20% of the shares should be used to reward the most core employees.
It is true that some parts of this world are the law of two or eight, where 20% of the people share 80% of the benefits.
As for the ordinary grass-roots employees who cannot share the cake, after saving enough experience in a small company, they usually have two choices, either to go to a large company with the same position, with a significant increase in salary, or to look for another small company to become the backbone of the core.
People are going to the high place, not here to stay master, have to stay master place, is not it?
Scarce talent industry is always coaxing, a company’s cake is always limited, such as OpenAI founding team of 11 members, now only 2 people are still in the company, an employee in OpenAI may not be too much irreplaceable, because it is not the core competitiveness, so it is not possible to get a particularly excessive returns.
Another company, such as Google, if you need this kind of talent, the simplest and most brutal way is to pay a high price to poach people.
That is to say, the value of an employee in the internal assessment and his value in the eyes of external competitors is completely different.
If another company or your own business, you can get a higher return.
In the end, it’s still all about money and power, and in the business world, economics is always in effect.