Disclaimer: worked only in startups as early-stage engineer.

I feel like early stage startups are getting closed to be toast, at least in bay area, from different angels conglomerates are better at non-compensation factors as well. And in current environment, when startups stay private longer, any engineer has a better chances to go to mid or late stage startup, wait till IPO and repeat. It is better from money, career, networking.

If put aside equity, as a decision factor, I think, early engineers can go to a startup because it's a faster growing environment with more freedom. Faster for career, business skills, networking, engineering skills... But founders are focused on growing a startup (or stock price) at all cost, short term, from round to round. And people personal goals are usually longer term and founders don't have time/will for that.

More thoughts on non-compensation factors that startups could get right if they want:

1. Advance in career faster.

Some go to startups because they feel they can progress faster in career ladder. In reality early engineers do not have enough experience for management/lead positions, and there is not enough experience to gain in early days (not enough people, tasks). Founders usually end up bringing ex-big corp/cool startup management, because "they worked at scale".

For management career development working at big corps are usually better, since there is a clear path you can take to grow, and you can estimate how much it will take you to do it.

Founders could be upfront about they goals and as part of offer could promise people a chance at management, some management coaching. Organizations like YC could offer early engineers management/leads coaching programs to their portfolio companies.

2. Grow as engineers

Startups usually don't have enough scale and tech is not perfect. More like a different peaces "glued" together in a hurry, and always constant change.

Anyone working at startups as early engineer and trying to go to big-corp for money will hear "yeah cool, but we are looking for tech experience at our scale of usage"

Startups can compete in this area (if they don't have scale) by allowing people to develop as public figures, encouraging blogging, talking at conferences.

3. Unlimited vacations. Flexible time.

Early engineers are always on, and harder to take long vacation, or completely disconnect. Compare to big corps, there are some where you can take several months sabbatical.

4. Full business transparency

Founders can be fully transparent in terms of business, funding in front of employees. This can go long way in developing loyalty and trust. Compare it to big corps, where there are layers of management.

5. Remote-first

More startups allow people to travel and work from whatever hours, location they want - more employees/engineers they will attract.
Founders could be upfront about it: we pay 80% of market comp, but we don't care where you work from, as long as you available from some reasonable time online.

6. Networking

I feel like startups suck at this. It's expensive to send people to conferences, startup team is small. Working at FAANg you have better networking opportunities.

YC/VCs could have a networking events not only for founders, but for engineers as well. From YC perspective it's better if engineer leaves for another YC company and stay in ecosystem, than to leave to FAANg.

7. Family friendly

I feel like big corps are more family friendly: insurance, time off, activities. Startups figuring out how to make it or compensate for luck of it — could help.