PREPARING FOR GROWTH | Reward Policies for New, Start-up and High-growth Organizations

PREPARING FOR GROWTH

Whatever the basic components of the reward system in a 'start-up' they should be developed with an eye to appropriateness in a larger organization. Particular attention will be needed in these areas:

• Pensions: schemes for small partnerships/groups of professionals or the self-employed will not easily adapt to cover 140 to 200 employees after three years. Professional advice will be needed to achieve this.
• Pay relativities: starting on a 'spot salary' basis is logical, but internal relativities should always be defensible as the organization grows.
• Executive share options/employee share schemes: should be capable of extension - again an area for good professional advice.
• Performance rewards: need to relate to the milestones in the business plan and be based on achievement of agreed objectives/performance standards. Chief executive-driven discretionary bonuses are typically suspect unless the boss really is in the 'tough but fair' (or preferably just the fair) category.