I just read a post by Shalin listing 5 reasons to hire freshers. The #5 reason which he states is "They're in-expensive".
My story till-date: graduated a month-and-three-days before the date of this blog post. Work remote for a startup in San Francisco and completed a month at my first job two days back. My pay is above average considering Indian pay scales for freshers. (I had to strike "above" after reading about the pay-scales at Amazon/Google in India)
Freshers come in 2 flavors (mild joke in a serious post) ones with the flair for programming (has programmed before, created stuff) and the others who can type out a bunch of random lines (you'll find a lot of these people).
I do not know which of these people Shalin was referring to. But if it's the ones with the flair for programming, I beg to disagree. You've got to give people a reason to join your startup. IMO, monetary incentives are under-rated, however interesting the work is.
Like some really nice guy stated a few days back - "Hiring is selling not buying". You are selling your idea/product to your potential hires, so that they join your cause. Ideally your new hires (referring to freshers) won't be getting any equity. So why not just pay them better than average and keep them happy? It isn't possible to mind-read and find out if that guy values monetary details of a job. Or you've got competition - startups that pay better for the same hire. I'm all for paying well.
Quoting one of my previous post:
And if you are trying to hire people to work for your startup for below-avg-pay, it shows that you are selfish and you want to taste success, without even wanting to thank those who led you there.
This post assumes that you are hiring only when you actually need to.
If someone said recession, I'm already crying. There was never a recession for the valuable employees/hires.
P.S: This post is in all faith a good discussion and totally my opinion.