June 04, 2023

Equity vs. Salary: Finding the Right Compensation Mix for Your Team

Cheryl Goh, Product Marketing Manager

Equity vs. Salary: Finding the Right Compensation Mix for Your Team


The significance of compensation in employee satisfaction

Employee satisfaction and retention are greatly influenced by compensation. Fair compensation can lead to a sense of value and motivate employees, while feeling underpaid or undervalued may cause disengagement and job hunting. Employers should frequently review and adjust their compensation packages to stay competitive and align with industry standards. Including both equity and salary in these packages can provide employees with a sense of company ownership, boosting their satisfaction and dedication. However, the process can be quite manual, often requiring months to produce results. This is where compensly can make a difference, offering a seamless, real-time platform for managing diverse compensation elements.

The intricate balance between equity and salary

Finding the right blend of equity and salary is a nuanced task, with potential benefits on both sides. Equity can incentivize employees and tie their fortunes to the company's success, while salary offers immediate financial security. The right mix depends on a range of factors, including company stage, industry norms, and individual preferences. Through compensly, balancing these considerations becomes significantly easier. The platform offers real-time data and customizable features, making compensation management efficient and adaptable.

Understanding equity and salary

Equity and salary serve different purposes in compensation. Equity confers a stake in the company's future success, while salary offers immediate, stable income. Both have their unique advantages and risks: equity's value can significantly fluctuate, whereas salary might not always inspire beyond-the-call-of-duty performance. With compensly, administering these forms of compensation becomes simpler, allowing companies to manage complex compensation plans with the same ease as handling regular salary payments.

Deciding on the right mix

The right blend of equity and salary relies on various factors: your company's stage and funding situation, industry norms, employee preferences, and your retention goals. Whether your employees prioritize potential financial reward via equity or prefer the stability of a higher salary, compensly allows for flexible adjustments to cater to these diverse preferences.

Assessment, communication, and adjustments

Evaluating your company's needs and formulating a fitting compensation plan are key steps towards finding the right compensation mix. This process can be time-consuming and complex. compensly simplifies this process by providing a user-friendly platform to evaluate market rates, manage the equity and salary blend, and even handle additional benefits.

Furthermore, clear communication is pivotal when deciding on compensation. By fostering transparency, compensly can help build trust within your team, ensuring everyone understands the value of their compensation.


The right compensation mix greatly impacts employee motivation, retention, and satisfaction. A well-considered balance of equity and salary can attract and retain talent, inspiring employees to contribute to the company's long-term success. However, compensation plans should adapt to meet the evolving needs of your company and employees. Regular evaluation and adjustments can help ensure your team remains motivated and engaged.

As your organization works towards finding the right compensation mix, exploring tools like compensly can be beneficial. Their platform helps streamline the management of compensation, easing the handling of complex equity and salary adjustments, making real-time data readily available. Consider taking a closer look at what compensly has to offer as part of your next steps in refining your compensation strategy.