Compensation for short-term and part-time workers

I hired an undergraduate software developer part-time to do some development work on our new platform. He was very good and inexpensive and had another year of studies before he graduated.

One day, he came to me and said he’d been offered other work by a major corporation for three times what we were paying him. We had just completed a seed round of funding and did not have a lot of cash to offer him more salary.

I didn’t know what to do. I thought about offering him options, but he likely wouldn’t stay long-term. I wondered if I should just go ahead and find someone new.