A startup will need to hire strong talent and retain them during critical periods to have a hope of success. The enticement needs to go beyond a simple deal of annual or hourly agreement. Bonuses based on completion of goals and other kinds of benefits are important. Shares in the company is even more important. If you don't have the enticement, you can just quit tomorrow and paid just as much somewhere else. The cost to the employee who quits is a tiny amount of risk in transitioning to a new job. The cost to the startup can be huge due to delays in hiring and ramping up new employees.