compensation in start-up companies andreya davis trish turner matt boone kristofer borchard michele...

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Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

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Page 1: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

Compensation in Start-Up Companies

Andreya DavisTrish TurnerMatt Boone

Kristofer BorchardMichele Boren

Dustin Haytema

Page 2: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

It’s Movie Time !!

“Dirty Work”< What a great business idea >

Page 3: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

How does this pertain to start-ups?

Every company starts with one great idea.

Their idea was generated by market demand.

The events that come next are typically the hard

part.

Page 4: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

Any ideas for a start-up?

If this process were easy, wouldn’t everyone own their own company?

Page 5: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

How are we going to break this issue up?

Employers Perspective

Employees Perspective

Two viewpoints of the situation are better than just one!!!

Page 6: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

What are employers of start-ups searching for?

Page 7: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

We Need Employees!

What Are We Looking For?MotivatedDedicated IndependentKnowledgeableOpen Minded

How Do We Obtain This? Intrinsic RewardsExtrinsic Rewards

Page 8: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

What Else Do We Consider?

Legal Considerations:

Wage withholding Payroll Tax AccountsEmployer I.D NumberWorkers Compensation and InsuranceCompliance with FLSA

Page 9: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

How to Compensate Beyond the Legal Minimums

Employer must decide what to offer (Afford):Base Pay

Salary vs Hourly Rate

Stock OptionsHealth Benefits401 K PlansVacation PackagesCombinations

Page 10: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

Why is compensation important?

Tons of new start-ups Generated from the Dot-Com

boom

Start-ups are offering non-traditional as well as traditional compensation systems Stock options Anything to entice the

prospective employee

The current down-turn in the economy Skepticism of compensation

within start-up is very high right now

Page 11: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

It’s Movie Time Again!!

“Boiler Room”Isn’t this what every employee is looking for?

Page 12: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

What Are Employees Looking For?

02468

10121416

What You Ranked Most Important(Results From January 21 Survey)

Page 13: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

What Are Employees Looking For?

0

2

4

6

8

Benefits Incentives Coworkers Important work

What You Ranked Second Most Important(Results From January 21 Survey)

Page 14: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

Why would you join a start-up company?

Endless opportunity for advancement

Becoming a major owner in the firm

Having a voice in the company

The chance to make a difference

Page 15: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

A Company That Did It Right

Page 16: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

JetBlue

BeginningsDavid NeelemanFebruary 11, 2000 Investment Capital:

$130 Million100% First-class

Page 17: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

Employees

Want great costumer service “Real enticements to come from the inside

out.” Motivated by intrinsic…

Work-life balanceElimination of Titles

…and extrinsic rewardsComprehensive pay and benefit package

Page 18: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

Compensation at JetBlue

Market matched compensation strategy

Benefits Medical/dental/life

insurance Short-term disability EAP’s 401 K plan’s Profit sharing Stock purchase plan Paid time off Flight benefits

Page 19: Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

What Have We Learned?

Get lots and lots of start up capital

Be knowledgeable on how to compensate and motivate

Watch the dough roll in!!!