Compensation Strategies for Startups


A common startup challenge is recruiting and retaining top talent on a budget.  Maximize the value of your compensation spending and reduce your risk by trying some creative strategies. 

Performance Pay

Offer incentive pay for exceptional talent – this will draw hires who are confident they can deliver and are enticed by the potential to make more than their current base salary.  This helps your company delay paying out excess money until you have additional revenue. 


Signing bonuses can help you recruit talent, and compensation in the form retention bonuses can reduce risk in the event the employee leaves too soon.

Equity Compensation and Profit Sharing 

Consider providing an employee an equity grant that vests over time, and align incentives for performance through profit sharing.

Take a look at the full article for additional strategies.

Laura Neeson