If you are in the early stages of a new business, you probably have already enlisted the aid of a lawyer for incorporation, an accountant to assist with your bookkeeping and taxes, as well as an insurance agent for the vast array of insurance coverages for the business and health insurance for yourself and your employees. The one area that you probably haven’t considered is the best way to compensate your staff.
Newly-minted companies generally have a shortage of money and a surplus of needs. Four (4) ideas that you should consider:
(1) Pay at or close to the market rates for the jobs the employees actually are performing.
(2) Communicate to employees about the business and how important they are to its potential success.
(3) Share basic financial data and the Company’s success with your employees through the use of incentive payments, or profit sharing. Please note that it’s not necessary to discuss the details, only an overview of the company’s finances.
(4) Don’t give away ownership at this time. Too many owners provide ownership much too easily to employees, without having proof of their long-term buy-in.
For more ideas or to discuss your situation, please give Mary a call at 201-934-0505 x 107 or Paul at 201-934-0505 x 111.