Incentivising Employees

Posted on August 30, 2011 by

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Employee productivity is vital to a successful startup.  You need to squeeze more out of less.  One way to accomplish this is by aligning your employees growth and wealth with the growth of your company.

While in Copenhagen I witnessed a great example of employees that where not aligned with their company and therefore had low productivity.  Copenhagen is not a tipping culture and more often than not my group of friends and I were turned away even with many open tables because the waiter had no incentive to seat us.  Long run this would hurt the top and bottom line for a restaurant.  Identifying unproductive employees is easy, but how does a business owner align them with his/her company.  Below are a few options,

  • Equity incentives (I do not recommend this choice, when ever possible try not to give away equity)
  • Put in place milestones at which point your employees get incentives
  • For a sales team have them work off commissions rather than a base salary
  • Figure out your employees true passion, and help them accomplish personal goals so they feel greater loyalty to your company
It is very possible that your employees don’t need a structure that aligns their wants with a companies needs, but its a safer bet to have it in place.
~Hamilton
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