I don’t know how others have done this; but when I’ve been involved in the past we have set aside a percentage of ownership to be distributed over the first few years of operation.
A fixed amount is distributed every year, split between team members more or less evenly. This means that the 1 or 2 folks who join early get a big chunk of equity, and everyone else gets less while the early employees continue to accrue shares. The benefit of a system like this is that it allows you to be transparent.
This is outside of executive hires, where equity is used for a different purpose (namely aligning the financial success of the company with the financial success of the individual).
All that said, I don’t believe startup equity is valued by tech workers older than 25. We’ve all been burned enough to have looked up the stats and realize that upwards of 75% of startups will never experience a liquidity event, and for those that do a multi-million dollar exit is a lot like winning the lottery — with similar odds. Most folks just end up with a bunch of out of the money options or some penny stock that’s not worth the trouble of selling.