Retaining talent is amongst the key concerns for most businesses. It becomes even more critical in case of a startup since there are anyway limited team members owing to scare resources.
In such a scenario, losing even a single person can disrupt the work and become a big hindrance in the smooth functioning of the startup.
One of the major reasons for attrition is that employee’s feel that their contributions are not valued and their roles not challenging enough. Rewarding them and recognizing their efforts from time to time and developing them to take on larger roles can help change this mindset. Here’s how:
1. ESOPs
ESOPsor Employee Stock Ownership Plans are the most effective way of retaining employees. Since startups usually cannot match the big salaries that larger and more established companies offer, ESOPs are a great bet in attracting the best talent owing to the ‘big buck’ in store over a period of time.
Giving equity of your startup in exchange for excellent performance or as a part of the salary are excellent ways of motivating your employees. This way, you are making the employees part owners of the startup and linking their potential earnings with their performance, thus compelling them to push themselves harder…
By aligning the employee’s financial interests with the company’s performance you are ensuring that they are committed to your organization’s success. Since your company’s stock is bound to go up as you move ahead and grow, the employees are bound to reap huge gains eventually.
They even stand a huge chance to win a once in a lifetime jackpot and turn into millionaires overnight in case you decide to sell the startup or get funded. A study done shows how employees with ESOPs had 3 times the retirement funds than employees with no ESOPs.
2. Inclusion in brainstorming/ strategic discussions
In startups where the average age of employees tends to be less than 25, including them in strategic discussions is the thing to keep your young guns engaged. Who wouldn’t like to be a
part of a high level committee or an empowered group of executives where you can influence the direction of…