Post on 31-Mar-2015
Compensation in Start-Up Companies
Andreya DavisTrish TurnerMatt Boone
Kristofer BorchardMichele Boren
Dustin Haytema
It’s Movie Time !!
“Dirty Work”< What a great business idea >
How does this pertain to start-ups?
Every company starts with one great idea.
Their idea was generated by market demand.
The events that come next are typically the hard
part.
Any ideas for a start-up?
If this process were easy, wouldn’t everyone own their own company?
How are we going to break this issue up?
Employers Perspective
Employees Perspective
Two viewpoints of the situation are better than just one!!!
What are employers of start-ups searching for?
We Need Employees!
What Are We Looking For?MotivatedDedicated IndependentKnowledgeableOpen Minded
How Do We Obtain This? Intrinsic RewardsExtrinsic Rewards
What Else Do We Consider?
Legal Considerations:
Wage withholding Payroll Tax AccountsEmployer I.D NumberWorkers Compensation and InsuranceCompliance with FLSA
How to Compensate Beyond the Legal Minimums
Employer must decide what to offer (Afford):Base Pay
Salary vs Hourly Rate
Stock OptionsHealth Benefits401 K PlansVacation PackagesCombinations
Why is compensation important?
Tons of new start-ups Generated from the Dot-Com
boom
Start-ups are offering non-traditional as well as traditional compensation systems Stock options Anything to entice the
prospective employee
The current down-turn in the economy Skepticism of compensation
within start-up is very high right now
It’s Movie Time Again!!
“Boiler Room”Isn’t this what every employee is looking for?
What Are Employees Looking For?
02468
10121416
What You Ranked Most Important(Results From January 21 Survey)
What Are Employees Looking For?
0
2
4
6
8
Benefits Incentives Coworkers Important work
What You Ranked Second Most Important(Results From January 21 Survey)
Why would you join a start-up company?
Endless opportunity for advancement
Becoming a major owner in the firm
Having a voice in the company
The chance to make a difference
A Company That Did It Right
JetBlue
BeginningsDavid NeelemanFebruary 11, 2000 Investment Capital:
$130 Million100% First-class
Employees
Want great costumer service “Real enticements to come from the inside
out.” Motivated by intrinsic…
Work-life balanceElimination of Titles
…and extrinsic rewardsComprehensive pay and benefit package
Compensation at JetBlue
Market matched compensation strategy
Benefits Medical/dental/life
insurance Short-term disability EAP’s 401 K plan’s Profit sharing Stock purchase plan Paid time off Flight benefits
What Have We Learned?
Get lots and lots of start up capital
Be knowledgeable on how to compensate and motivate
Watch the dough roll in!!!