A STUDY ON COMPARING COMPENSATION STRATEGIES FOR STARTUPS VS ESTABLISHED COMPANY

Abstract: This study compares compensation strategies between startups and established companies, focusing on how each type structures pay, benefits, and incentives to attract and retain talent. While established companies offer structured salary bands, retirement benefits, and stability, startups often rely on flexible work environments, equity options, and performance-linked incentives to compete despite limited financial resources. A survey of 103 respondents revealed that startups prioritize growth potential and non-monetary perks, whereas established firms emphasize security and standardization. Key influencing factors include market demand, financial resources, and industry trends. Findings show that startups appeal more to younger, risk-tolerant individuals, while established companies attract those seeking long- term security. Despite their contrasting approaches, both types face challenges in compensation management. The study highlights the importance of tailoring compensation to organizational context and offers recommendations for improving strategies in both startup and corporate environments.

Keywords: Compensation Strategies, Startups, Established Companies