If you are just beginning 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 employees.
Newly-minted companies generally have a shortage of money and a surplus of needs. Four (4) ideas that you should consider, including: (1) paying at or close to the market rates for the jobs they are performing. (2) Being open with employees about the business and how important they are to its potential success, and (3) sharing the financial success with your employees through some form of bonuses or incentive payments, although it’s not necessary to discuss the details of the company’s finances. (4) Don’t give away ownership at this time. Too many owners give ownership too easily to employees, without having enough proof of long-term buy-in from them.
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 x111.