Launching a startup represents an entrepreneur’s dream turning into a reality. All the thoughts about financial freedom, personal success, and doing what you love come true. Other truths surface as well. Namely, the fact that you can’t do everything on your own arrives. At some point, you must hire employees. A positive aspect to hiring employees is the startup has the cash flow to hire. Or does it?
Startups don’t always have a lot of money available. Lack of revenue could mean low salaries for employees. Bringing new employees on board or retaining valuable ones becomes tough when wages aren’t competitive. An entrepreneur isn’t necessarily in a bad position though. The startup owner can tap into a little business creativity to offer incentives to employees. The right incentive offers might lead to attracting and keeping great employees.
Ownership and Profit Sharing Stakes in the Company
Salary compensation isn’t the only way to keep employees in the fold. Profit sharing and ownership deals may entice adventurous workers. Maybe the employees are familiar with the legend of Hotmail’s buyout.
Years ago, MSN’s Outlook email service began life as a startup called Hotmail.com. Hotmail was the first free email service in existence. Unfortunately, Hotmail’s management had trouble paying employees. Employees were offered a stake in the company to compensate for a pay cut. Employees who took the deal made out quite nicely. Microsoft purchased Hotmail for $400 million.
The chances of something as dramatic as the Hotmail event reoccurring are incredibly rare. However, employees could garner modest earning from a profitable startup.
Delivering Free Perks
Depending on the type of company you operate, it may be easy to provide certain perks to employees. The perks could be delivered on day one of the employee’s hiring or offered as an incentive for a solid performance. A gym can provide an option for the employee to sell personal training sessions and keep 100% of the payment. An indoor RV storage business could offer free space to workers who need it. The key here is employees get something of monetary value at no cost. “Free stuff” tends to motivate and incentivize people.
Explain Your Vision for the Startup
Employees sometimes enjoy being part of something potentially big and historic. Employers who sell their employees on a startup grand potential success might discover workers want to stay along for the long ride. Imagine how many workers wish they had a time machine to go back during the very early days of Apple, Uber, or Netflix. Let top employees in on your vision for the future. Be honest and don’t exaggerate. Spell out your general business plans about where you wish to take the company. The other person may become both impressed and enthused. Such attitudes help when trying to keep someone loyal to your startup.
Invest in Teambuilding Services
Employers try to do a lot to incentivize their employees. The boss does have his/her limitations. No one can do all the work of incentivizing employees by him/herself. If employees can incentivize each other, a burden lifts from a boss’ shoulders. Employees might not take on these responsibilities without guidance. They don’t avoid drawing inspiration from each other out of indifference or jealous. Often, they don’t know how to work together to build up a collective of enthusiasm.
Calling in a team building coach could solve this problem. Motivational coaches instill the skills necessary for workers to bond and perform better together. Productivity in the office may increase significantly. When employees see their work contributing to the good of the company, the may feel incentivized to work harder as a unit. Bio: Jeremy is a tech and business writer from Simi Valley, CA. He’s worked for Adobe, Google, and himself. He lives for success stories, and hopes to be one someday.