Several companies, especially startups struggle at talent recruitment simply due to the lack of funds. Pay per performance can be one way to bridge this gap. Another could be to pay up the expenses before the final taxable figure. Several costs escalate up for employees, so if the company can pre-pay all these such as parking, gym memberships, snacks, occasional lunches, hardware and public transport passes, it will be substantial savings for employees. The risk of employee turnover may be reduced by adding clauses such as signing-on or quarterly retention bonuses. Substantial investment must be made on employees’ management training needs. Equity compensation or profit sharing could be introduced. Work-life balance and flexibility is a must now. Finally, employees must be allotted respectable job titles to go along with their work.

Source:https://hbr.org/2018/07/7-compensation-strategies-for-cash-strapped-startups?utm_medium=email&utm_source=newsletter_monthly&utm_campaign=finance_activesubs_dalertnlsubs&utm_content=signinnudge&referral=00209&deliveryName=DM10732

Uploaded Date:02 August 2018