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Let's assume you are a HR Manager at a high tech start-up company in its late stages with 3 rounds of funding. The firm's cash balance is $13 million, with a burn rate off $1 million/per month. It anticipates a break-even within 1 1/2 years, and there are no plans for acquisition or IPO within the next year. The company is an opto-electronics company, which is a highly specialized niche within the telecommunications industry. You are building out a team for Operations, which will be made up of experienced individuals from top competitor. What is the most appropriate compensation philosophy for this organization?
Suggested Answer: C
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12 comments · newest first
HU
Huey
11 months ago
Surprised they’re not considering an IPO soon with that cash flow!
JO
Johnetta
11 months ago
Compensation based on candidate demands? Sounds a bit too flexible.
DE
Deeanna
12 months ago
At the market seems reasonable, but we need to stand out.
TU
Tuyet
12 months ago
Lagging the market? That’s risky with such a specialized team.
ME
Melvin
12 months ago
I think leading the market makes sense for attracting top talent.
LU
Luther
1 year ago
I feel like compensation that the ideal candidate demands could be a good strategy, but it really depends on how competitive the talent pool is in this niche industry.
CO
Cortney
1 year ago
I practiced a similar question where the company was in a growth phase. I think at the market could be a safe approach, but it might not stand out enough to get the best candidates.
LO
Lorean
1 year ago
I remember discussing how a start-up with a limited cash flow might need to be cautious about compensation. Lagging the market could save money, but it might not attract top talent.
RE
Renea
1 year ago
I think leading the market could be risky given the burn rate, but it might be necessary to attract experienced individuals from competitors. I’m not entirely sure though.
SH
Shanice
1 year ago
I'm a bit unsure about this one. I'll have to review my notes on human visual perception.
EM
Emiko
1 year ago
Okay, I've got this. ATM and Frame-Relay use virtual circuits to create a logical separation of traffic, so that's the answer. Virtual circuits allow them to keep different customers' or traffic types' data separate on the same physical wire.
BU
Buck
1 year ago
Okay, I've got this. FERPA requires written permission from the parent or eligible student before releasing personally identifiable information. The correct answer must be one of the options that involves that requirement.