Create Compensation Packages That Incentivize Growth and Profitability

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Giving key team members a sense of ownership can be a challenge. Often, giving out percentages of ownership can lead to regret. As the business grows, those who helped you start the business may not have the skill set to take it to the next level. If you’ve given away percentages of ownership, though, you’re stuck. You have to buy that person out, and this can be costly.

Not only do we not recommend sharing ownership, but we also don’t recommend creating a profit share system either. Most small business leaders see large corporations installing profit share systems and believe you need to create one for your employees as well.

Creating compensation packages that scale with the business but do not involve profit share or percentages of ownership. Here are some great alternatives that will keep you out of trouble and honor your team members for their contribution.

There are five evolutionary levels to compensate and incentivize team members:

1. Salary + no benefits
2. Salary + benefits
3. Salary + benefits + discretionary bonuses
4. Salary + benefits + performance-based bonuses
5. Salary + benefits + performance-based bonuses + revenue-triggered bonuses

Fairly compensating team members and offering them performance-based bonuses will help retention and morale.

When I help you install a fair compensation package, you get:

• Higher morale for your entire team
• A competitive advantage in recruiting top talent
• Higher retention rates for top talent
• Properly incentivized growth for your company

One-on-One Coaching — Compensation Packages for Top Talent

• Duration: 4 sessions
• Frequency: Bi-weekly
• Session length: 60 minutes

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