The importance of stock options in start-up recruiting is largely dependent on your industry, location and the position for which you are hiring.
In some areas of the world stock options (or a similar type of equity compensation) are considered an essential component for every mid and high level hire. Because “everyone” gives them, “everyone else”, including you, need to give them. The Silicon Valley is still very much like this. So is the tech sector in NYC and other tech and life sciences hubs. Survey data for these areas and industries show that most companies use equity.
When hiring in manufacturing, professional services and many other non-tech, non-life science industries equity may not be a convincing recruiting tool at all. It may, however, be a great differentiator, or sweetener when a prospective hire is comparing your offer to a competitor’s offer. If that is the purpose, you must take care to clearly communicate this, as most people, especially outside of tech, will have little experience with or understanding of equity.
reposted from Quora