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If you actually think those are the costs of firing a new hire, you need to talk to a labor lawyer immediately, because 1, 2, and 3 are hiring costs which don't apply to most jobs--startups included. Only in the rarefied world of FAANG and VC-funded money-losing unicorns do new hires get relocation expenses and a starting bonus. Even associates starting new jobs at BigLaw firms don't get paid relocation expenses or starting bonuses. And if you're doing the hiring in-house why are you paying a headhunter fee?

5. COBRA is paid by the employee, not the employer.

6. Somehow every other industry except programming manages to do this just fine.

7. This is completely and utterly false. If a new hire doesn't work out you can just let them go. Somehow, companies do this all the time without issues, including companies with much cushier jobs than startups.

8. Everything comes with the risk of a lawsuit. You're prematurely optimizing for the 0.0001% case, for an imagined scenario that isn't that expensive to defend.

9. Most of these apply to leaving the position open for months without filling. So let me add one to your list that applies if you don't fill the job: employee burnout leaving to existing employees leaving before the open position is filled, leaving you with more positions to fill than you started with.



Paid relocation expenses is fairly common outside of SV for highly compensated employees, however, they are structured so that you must pay it back if you don't stay employed for a certain time (usually a year). I've never heard of a relocation bonus that wasn't structured this way.

Retention bonuses and starting bonuses are structured the same, you sign an agreement to get that bonus that says you pay it back if either you or the company decides to end employment within a certain timeframe.


I agree with you for the most part, however, you keep claiming that relocation are not usually paid. I know that relocation packages are very commonly offered to programmers, even in entry-level positions, in the finance and oil industries.




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