1 / 19

Compensation in Start-Up Companies

Compensation in Start-Up Companies. Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele 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.

tawny
Download Presentation

Compensation in Start-Up Companies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

  2. It’s Movie Time !! “Dirty Work” < What a great business idea >

  3. 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.

  4. Any ideas for a start-up? • If this process were easy, wouldn’t everyone own their own company?

  5. How are we going to break this issue up? • Employers Perspective • Employees Perspective • Two viewpoints of the situation are better than just one!!!

  6. What are employers of start-ups searching for?

  7. We Need Employees! • What Are We Looking For? • Motivated • Dedicated • Independent • Knowledgeable • Open Minded • How Do We Obtain This? • Intrinsic Rewards • Extrinsic Rewards

  8. What Else Do We Consider? • Legal Considerations: • Wage withholding • Payroll Tax Accounts • Employer I.D Number • Workers Compensation and Insurance • Compliance with FLSA

  9. How to Compensate Beyond the Legal Minimums • Employer must decide what to offer (Afford): • Base Pay • Salary vs Hourly Rate • Stock Options • Health Benefits • 401 K Plans • Vacation Packages • Combinations

  10. 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

  11. It’s Movie Time Again!! “Boiler Room” Isn’t this what every employee is looking for?

  12. What Are Employees Looking For?

  13. What Are Employees Looking For?

  14. 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

  15. A Company That Did It Right

  16. JetBlue • Beginnings • David Neeleman • February 11, 2000 • Investment Capital: $130 Million • 100% First-class

  17. Employees • Want great costumer service • “Real enticements to come from the inside out.” • Motivated by intrinsic… • Work-life balance • Elimination of Titles • …and extrinsic rewards • Comprehensive pay and benefit package

  18. 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

  19. 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!!!

More Related