Happy July. I hope you’ve been enjoying some time outside with friends and family like we have.
You may have seen Carta’s recently released compensation report. It is excellent.
Some data points that resonate with what we're seeing in the market:
- The highest jump in compensation over the last 6 months was for Sales, Analyst, Customer Success, and Product roles.
- The most highly compensated roles at startups are Legal, Strategy, Product, Engineering, and Finance – in that order.
- 62% of startup hires are now in a state or country outside of the company’s primary headquarters. This is up from 35% pre-pandemic. This is remarkable and something I am so happy about. It means more great talent is being discovered than ever before.
- 84% of companies take location into account when deciding compensation packages for team members. I remember pre-pandemic when there was a debate at the relatively few remote-first companies (GitHub, Automattic, Basecamp, etc.) about whether to offer different compensation for the same work due solely to differences in employee location. Seems like the market has largely settled that debate.
- The four “Tier 1” metros in the United States that compensate at the top of the pay scale are San Francisco, San Jose, Seattle and New York. Some of the U.S. metros that compensate near the bottom are Raleigh, Columbus, Las Vegas, Pittsburgh, and Tampa. I suspect there are still lots of opportunities to find great people for a wide variety of roles in those latter metros.
- That said, the pay gaps by geography across the country are converging quickly. That means the “labor arbitrage” opportunity globally may narrow over time. On the other hand, that means people across the world are being compensated more due to what they’re worth in the market rather than due to the happenstance of where they were born. I’d rather live in a world where people are compensated based on what they’re worth rather than based on where they were born.
Do these agree with what you're seeing?
Sander & the Scaled team
Scaled Q2 update
Reminder: Scaled is the premier recruiting solution for the world's most ambitious startups. In Q2, we closed more roles more quickly than ever before.
- We closed senior and mid-level roles across People, Finance, and Growth functions.
- Our average time to hire was 40 days from the date JD was posted to the date candidates were signed.
- We now offer two products:
- Executive search focused on People, Finance and Legal roles.
- A new “recruiting as a service” product for all other startup roles. This new product offers companies the best Sourcers, Recruiters, and Recruiting Coordinators at a 60% lower cost than typical agency fees.
Is a company you know or advise:
- looking to accelerate their hiring with great recruiting help?
- looking to reduce their current recruiting costs?
- about to hire executive talent?
If any of the above are true – we can help and would love to chat.
Here are some inspiring things we read this month.
- Navigating the downturn by Waseem Daheer. This is a note that Waseem at Pilot sent to his customers about how to navigate the downturn. Much of the advice resonated with our experience.
- Leaders Eat Last by Simon Sinek. I hadn’t heard of Simon Sinek until recently. When I mentioned that to a couple of friends they gave me a funny look like “Welcome to Planet Earth.” This book is all about how to build a human-centric organization. It’s a leadership philosophy we aspire to live by.
- How to kickstart and scale a consumer business by Lenny Rachitsky. Lenny gathered data about the origins of a few dozen iconic consumer tech businesses. Common among all: they dreamed big. Are you dreaming big?
Welcome Sarah and Sumit to Scaled!
We are strengthening our team in the down market. We’ve recently added two great folks to bolster our Sourcing team even further.
Sarah Berger, Sourcing Manager
Sarah is a talent acquisition leader with 8+ years of experience scaling companies. This includes within all levels of an organization, across a variety of industries, and in multiple geographical locations. She specializes in working with early-stage start-ups, both in-house and agency side. Passionate about mentorship and upskilling recruitment teams. Additional expertise in creating complete recruitment processes from scratch.
When she’s not managing our team of sourcing experts, Sarah likes to unplug and explore the outdoors of Northern California. You can also find her in a yoga studio, walking her shihpoo (Zen), or buying more succulents she doesn’t need.
Sumit Jaripatke, Senior Sourcer
Sumit is a past startup founder, community builder and radical believer in people. He has been a founder of a B2B as well as edtech venture where he bootstrapped his ventures to ~3000 MRR while building a remote team of developers, designers and community managers. Previously worked at On Deck, where he helped tech startups hire world-class talent and drive their talent strategy. He can wear many hats and has the ability to figure things out to get the job done.
In his free time, he enjoys playing as well as watching sports (more of the latter now). He is also a foodie who enjoys trying different cuisines.