--- name: team-composition-analysis description: This skill should be used when the user asks to \\\"plan team structure", "determine hiring needs", "design org chart", "calculate compensation", "plan equity allocation", or requests... risk: unknown source: community date_added: '2026-02-27' --- # Team Composition Analysis Design optimal team structures, hiring plans, compensation strategies, and equity allocation for early-stage startups from pre-seed through Series A. ## Use this skill when - Working on team composition analysis tasks or workflows - Needing guidance, best practices, or checklists for team composition analysis ## Do not use this skill when - The task is unrelated to team composition analysis - You need a different domain or tool outside this scope ## Instructions - Clarify goals, constraints, and required inputs. - Apply relevant best practices and validate outcomes. - Provide actionable steps and verification. - If detailed examples are required, open `resources/implementation-playbook.md`. ## Overview Build the right team at the right time with appropriate compensation and equity. Plan role-by-role hiring aligned with revenue milestones, budget constraints, and market benchmarks. ## Team Structure by Stage ### Pre-Seed (0-$500K ARR) **Team Size: 2-5 people** **Core Roles:** - Founders (2-3): Product, engineering, business - First engineer (if needed) - Contract roles: Design, marketing **Focus:** Build and validate product-market fit ### Seed ($500K-$2M ARR) **Team Size: 5-15 people** **Key Hires:** - Engineering lead + 2-3 engineers - First sales/business development - Product manager - Marketing/growth lead **Focus:** Scale product and prove repeatable sales ### Series A ($2M-$10M ARR) **Team Size: 15-50 people** **Department Build-Out:** - Engineering (40%): 6-20 people - Sales & Marketing (30%): 5-15 people - Customer Success (10%): 2-5 people - G&A (10%): 2-5 people - Product (10%): 2-5 people **Focus:** Scale revenue and build repeatable processes ## Role-by-Role Planning ### Engineering Team **Pre-Seed:** - Founders write code - 0-1 contract developers **Seed:** - Engineering Lead (first $150K-$180K) - 2-3 Full-Stack Engineers ($120K-$150K) - 1 Frontend or Backend Specialist ($130K-$160K) **Series A:** - VP Engineering ($180K-$250K + equity) - 2-3 Senior Engineers ($150K-$180K) - 3-5 Mid-Level Engineers ($120K-$150K) - 1-2 Junior Engineers ($90K-$120K) - 1 DevOps/Infrastructure ($140K-$170K) ### Sales & Marketing **Pre-Seed:** - Founders do sales - Contract marketing help **Seed:** - First Sales Hire / Head of Sales ($120K-$150K + commission) - Marketing/Growth Lead ($100K-$140K) - SDR or BDR (if B2B) ($50K-$70K + commission) **Series A:** - VP Sales ($150K-$200K + commission + equity) - 3-5 Account Executives ($80K-$120K + commission) - 2-3 SDRs/BDRs ($50K-$70K + commission) - Marketing Manager ($90K-$130K) - Content/Demand Gen ($70K-$100K) ### Product Team **Pre-Seed:** - Founder as product lead **Seed:** - First Product Manager ($120K-$150K) - Contract designer **Series A:** - Head of Product ($150K-$180K) - 1-2 Product Managers ($120K-$150K) - Product Designer ($100K-$140K) - UX Researcher (optional) ($90K-$130K) ### Customer Success **Pre-Seed:** - Founders handle support **Seed:** - First CS hire (optional) ($60K-$90K) **Series A:** - CS Manager ($100K-$130K) - 2-4 CS Representatives ($60K-$90K) - Support Engineer (technical) ($80K-$120K) ### G&A (General & Administrative) **Pre-Seed:** - Contractors (accounting, legal) **Seed:** - Operations/Office Manager ($70K-$100K) - Contract CFO **Series A:** - CFO or Finance Lead ($150K-$200K) - Recruiter ($80K-$120K) - Office Manager / EA ($60K-$90K) ## Compensation Strategy ### Base Salary Benchmarks (US, 2024) **Engineering:** - Junior: $90K-$120K - Mid-Level: $120K-$150K - Senior: $150K-$180K - Staff/Principal: $180K-$220K - Engineering Manager: $160K-$200K - VP Engineering: $180K-$250K **Sales:** - SDR/BDR: $50K-$70K base + $50K-$70K commission - Account Executive: $80K-$120K base + $80K-$120K commission - Sales Manager: $120K-$160K base + $80K-$120K commission - VP Sales: $150K-$200K base + $150K-$200K commission **Product:** - Product Manager: $120K-$150K - Senior PM: $150K-$180K - Head of Product: $150K-$180K - VP Product: $180K-$220K **Marketing:** - Marketing Manager: $90K-$130K - Content/Demand Gen: $70K-$100K - Head of Marketing: $130K-$170K - VP Marketing: $150K-$200K **Customer Success:** - CS Representative: $60K-$90K - CS Manager: $100K-$130K - VP Customer Success: $140K-$180K ### Total Compensation Formula ``` Total Comp = Base Salary × 1.30 (benefits & taxes) + Equity Value ``` **Fully-Loaded Cost:** - Base salary - Payroll taxes (7.65% FICA) - Benefits (health insurance, 401k): $10K-$15K per employee - Other (workspace, equipment, software): $5K-$10K per employee **Rule of Thumb:** Multiply base salary by 1.3-1.4 for fully-loaded cost ### Geographic Adjustments **San Francisco / New York:** +20-30% above benchmarks **Seattle / Boston / Los Angeles:** +10-20% **Austin / Denver / Chicago:** +0-10% **Remote / Other US Cities:** -10-20% **International:** Varies widely by country ## Equity Allocation ### Equity by Role and Stage **Founders:** - First founder: 40-60% - Second founder: 20-40% - Third founder: 10-20% - Vesting: 4 years with 1-year cliff **Early Employees (Pre-Seed):** - First engineer: 0.5-2.0% - First 5 employees: 0.25-1.0% each **Seed Stage Hires:** - VP/Head level: 0.5-1.5% - Senior IC: 0.1-0.5% - Mid-level: 0.05-0.25% - Junior: 0.01-0.1% **Series A Hires:** - C-level (CTO, CFO): 1.0-3.0% - VP level: 0.3-1.0% - Director level: 0.1-0.5% - Senior IC: 0.05-0.2% - Mid-level: 0.01-0.1% - Junior: 0.005-0.05% ### Equity Pool Sizing **Option Pool by Round:** - Pre-Seed: 10-15% reserved - Seed: 10-15% top-up - Series A: 10-15% top-up - Series B+: 5-10% per round **Pre-Funding Dilution:** Investors often require option pool creation before investment, diluting founders. **Example:** ``` Pre-money: $10M Investors want 15% option pool post-money Calculation: Post-money: $15M ($10M + $5M investment) Option pool: $2.25M (15% × $15M) Founders diluted by pool creation before new money ``` ## Organizational Design ### Reporting Structure **Pre-Seed:** ``` Founders (flat structure) ├── Contractors └── First hires (report to founders) ``` **Seed:** ``` CEO ├── Engineering Lead (2-4 engineers) ├── Sales/Growth Lead (1-2 reps) ├── Product Manager └── Operations ``` **Series A:** ``` CEO ├── CTO / VP Engineering (6-20 people) │ ├── Engineering Manager(s) │ └── Individual Contributors ├── VP Sales (5-15 people) │ ├── Sales Manager │ ├── Account Executives │ └── SDRs ├── Head of Product (2-5 people) │ ├── Product Managers │ └── Designers ├── Head of Customer Success (2-5 people) └── CFO / Finance Lead (2-5 people) ├── Recruiter └── Operations ``` ### Span of Control **Manager Ratios:** - First-line managers: 4-8 direct reports - Directors: 3-5 direct reports (managers) - VPs: 3-5 direct reports (directors) - CEO: 5-8 direct reports (executive team) ## Full-Time vs. Contract ### Use Full-Time for: - Core product development - Sales (revenue-generating roles) - Mission-critical operations - Institutional knowledge roles ### Use Contractors for: - Specialized short-term needs (legal, accounting) - Variable workload (design, marketing campaigns) - Skills outside core competency - Testing role before FTE hire - Geographic expansion before permanent presence ### Cost Comparison **Full-Time:** - Lower hourly cost - Benefits and overhead - Long-term commitment - Cultural fit matters **Contract:** - Higher hourly rate ($75-$200/hour vs. $40-$100/hour FTE equivalent) - No benefits or overhead - Flexible engagement - Easier to scale up/down ## Hiring Velocity ### Realistic Timeline **Role Opening to Hire:** - Junior: 6-8 weeks - Mid-Level: 8-12 weeks - Senior: 12-16 weeks - Executive: 16-24 weeks **Time to Productivity:** - Junior: 4-6 months - Mid-Level: 2-4 months - Senior: 1-3 months - Executive: 3-6 months ### Planning Buffer Always add 2-3 months buffer to hiring plans. **Example:** If need engineer by July 1: - Start recruiting: April 1 (12 weeks) - Productivity: September 1 (2 months ramp) ## Budget Planning ### Compensation as % of Revenue **Early Stage (Seed):** - Total comp: 120-150% of revenue (burning cash to grow) - Engineering: 50-60% - Sales: 30-40% - Other: 20-30% **Growth Stage (Series A):** - Total comp: 70-100% of revenue - Engineering: 35-45% - Sales: 25-35% - Other: 20-30% ### Headcount Budget Formula ``` Total Comp Budget = Σ (Role Count × Fully-Loaded Cost × % of Year) Example: 3 Engineers × $202K × 100% = $606K 2 AEs × $230K × 75% (mid-year start) = $345K 1 PM × $162K × 100% = $162K Total: $1.1M ``` ## Additional Resources ### Reference Files - **`references/compensation-benchmarks.md`** - Detailed salary data by role, level, and location - **`references/equity-calculator.md`** - Equity sizing formulas and dilution scenarios ### Example Files - **`examples/seed-stage-hiring-plan.md`** - Complete hiring plan for seed-stage SaaS company - **`examples/org-chart-evolution.md`** - Organizational design from 5 to 50 people ## Quick Start To plan team composition: 1. **Identify stage** - Pre-seed, seed, or Series A 2. **Define roles** - What functions are needed now 3. **Prioritize hires** - Critical path for business goals 4. **Set compensation** - Base salary + equity by level 5. **Plan timeline** - Account for recruiting and ramp time 6. **Calculate budget** - Fully-loaded cost × headcount 7. **Design org chart** - Reporting structure and span of control 8. **Allocate equity** - Fair allocation that preserves pool For detailed compensation benchmarks and hiring plan templates, see `references/` and `examples/`.