I think people realize this. Nobody who cares about job security works for a startup unless they have no other options.
Working for a startup when you want job security would be like getting an art degree if you want money.
My experience has been that if you want to hire people for significantly below market rates, you need to accept that you will be getting inexperienced people who probably can't get good stable corporate jobs. They are getting paid in experience rather than equity. It's just not really something that people who are good and experienced do very often, because as you said, it's not a very good deal compared to the other options available to people who are good and experienced.
(note, I said "hiring" - the rules are rather different if you make them a founder, or give them founder-level equity.)
Or excellent, qualified employees looking for a lot more security. For me to go that route again, I'd be looking for a lot of vacation time (6-8 weeks). Even then the salary would have to be pretty solid as well.
Working for a startup when you want job security would be like getting an art degree if you want money.
My experience has been that if you want to hire people for significantly below market rates, you need to accept that you will be getting inexperienced people who probably can't get good stable corporate jobs. They are getting paid in experience rather than equity. It's just not really something that people who are good and experienced do very often, because as you said, it's not a very good deal compared to the other options available to people who are good and experienced.
(note, I said "hiring" - the rules are rather different if you make them a founder, or give them founder-level equity.)