At the end of last year, I had the pleasure of sitting down with Talent Hacker, Steve Cadigan to discuss the challenges and opportunities in startup compensation. Steve has been at the forefront of global talent strategy and company culture for the past 30 years. Best known for scaling LinkedIn from 400 to 4,000 employees in just 3.5 years, Steve also spearheaded the development of LinkedIn's legendary company culture, guiding the talent function through its highest growth period and its IPO. With experience spanning five industries, three countries, and numerous acquisition integrations, Steve's expertise in the talent arena is unparalleled.

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During his tenure at LinkedIn, Steve led the charge in attracting top talent, often competing directly with industry giants like Google, Facebook, Apple, and Twitter. Despite having fewer resources and less brand appeal at the time, Steve leveraged a people-first approach and a focus on culture to build one of the most dynamic and sought-after organisations in the world. Today, Steve continues to help leaders and organisations craft winning talent strategies to thrive in an increasingly complex digital economy.

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What drew you to a career in HR, and how has your journey shaped your view of startup compensation?

I stumbled into HR early in my career, joining a recruiting team at a fashion company. What hooked me was the challenge of assembling great teams and creating value—much like building a successful sports team. Over the years, I’ve worked across industries and regions, managing everything from compensation to culture. My time as LinkedIn’s first CHRO taught me the unique challenges of building HR from the ground up, especially in a hyper-growth startup environment. It’s a balancing act between aligning compensation with values and crafting a mission that attracts people beyond just the paycheck.

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How do you advise startups to approach compensation in competitive markets like Silicon Valley?

Start by asking, “Why would someone want to work here?” At LinkedIn, we couldn’t outpay Google or Facebook, so we leaned into our mission: helping people find their dream jobs. Compensation wasn’t our lead; it was about selling the role, the impact, and the growth potential. Most employees we hired in the early days took pay cuts to join because they believed in what we were building. Make your problem worth solving, and the right people will want to be part of it.

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What’s a common pitfall for HR leaders when addressing compensation?

Believing you need to have all the answers. Compensation is complex, and no one is an expert in every aspect of it. Build a strong network and lean on others for insights. Be transparent with your team: acknowledge your strengths and gaps, and invite leadership to co-own the talent agenda. If you try to tackle equity, inclusion, and retention alone, you’re setting yourself up for burnout.

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How can startups differentiate themselves in attracting and retaining talent?

Think beyond salary. One example from LinkedIn was “InDays,” where employees got one Friday a month to work on passion projects. It gave people space to recharge and innovate, becoming part of our culture and compensation stack. Also, align your rewards with your mission. At LinkedIn, we often focused on opportunities for growth, the ability to make an impact, and the trust we built with our employees rather than just focusing on financial rewards.

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What advice would you give to startups struggling with pay transparency?

Transparency is really about trust. Start by explaining your pay philosophy and how decisions are made. For example, share salary ranges and the rationale behind them, but understand that true transparency requires groundwork. Before opening up salaries, ensure your pay practices are consistent and defensible. Without that foundation, transparency can backfire and erode trust rather than build it.

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What trends do you see shaping the future of startup compensation?

The rise of fractional and gig work is forcing companies to rethink traditional models. More organisations are offering flexible arrangements to attract top talent, like Canva, who are offering hires two options: they can either join as a contractor or as an employee. Compensation structures need to evolve to account for this shift—it’s no longer just about full-time salaries. Startups also need to prepare for the growing demand for genuine work-life balance and meaningful growth opportunities, alongside competitive pay. The key is agility: adjust your approach as your company and the market evolve.

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You can find Steve on LinkedIn here.

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