Reward Policies for New, Start-up and High-growth Organizations

WHERE TO START

The objectives of a reward system designed to meet the needs of a business start-up are to:

• Attract and keep people anxious to make the organization grow and flourish.
• Reward the risk of coming into a new venture with high rewards and generally a share in the business if the risk pays off - for those who have real control over development. It is more difficult and probably unrealistic to reward support and more junior staff on a 'high-risk' basis.
• Provide a sensible basic salary that is reasonably competitive with the market for most staff and highly competitive if rare skills have to be brought in. This is one time to pay at the top of the market.
• Lock people in to give business stability - typically with generous share schemes for senior executives and an all-employee SAYE share scheme SIP or profit sharing for everyone else.
• Minimize overheads by keeping benefits to a decent basic core until there is some 'fat' in the system or where competitive pressure indicates additions to the various benefits.
• Pay out bonuses or provide non-cash rewards (have a party!) when key milestones in the business plan are successfully achieved
• Recognize that in the early days office accommodation may be at best basic and demonstrate willingness to improve conditions as soon as practicable (fresh flowers in an aged but clean reception area - or even in the staff lavatories - can have a significant effect on the way the company is perceived).