Remove Cost Remove Retention Remove Startup Remove Stock Options
article thumbnail

Choke the Churn: How to Prevent Employee Turnover in Startup Businesses

Up and Running

I spent years as a manager at a startup company. On average, it costs nearly three times an employee’s salary to replace them. This cost includes recruitment, lost productivity, and lost opportunity. In my experience, the employees of a startup company represent the future and face of the business. Here is how to do it.

article thumbnail

Should Startups Care About Profitability?

Both Sides of the Table

There are certain topics that even some of the smartest people I talk with who aren’t startup oriented can’t fully grok. It’s common cocktail party chatter to hear people confidently pronounce that some well known startup is sure to blow up because, “How could they succeed when they’re not even profitable!” What did they actually do?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How Should You Set Up Your Company’s Benefits Structure?

The Startup Magazine

Firstly, you need to make sure that your benefits are cost-effective and ultimately affordable for your organization. Also factor in the value of recruitment and employee retention as part of your calculations; if you can spend a little more on perks and in doing so increase loyalty, this might help you justify the expense.

article thumbnail

Should You Offer Equity Compensation to Employees?

Up and Running

If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Make sure you understand all of your options before making any decisions. More often than not, equity compensation is an attraction and retention tool, rather than a replacement to salary.

Equity 60
article thumbnail

How Great, Operationally-Focused CFO’s Can Transform Your Business

Both Sides of the Table

It’s such a tricky balance between being cost-focused & scrappy versus being impractical with how you spend your time. Great startups have budgets. It turns out that financial reporting (GAAP) doesn’t take into account the only thing that matters to startup survival – cashflow. And so must you.

article thumbnail

Sideways Startups: Donating Private Stock

Gust

Donations of private company stock may be an effective and tax-efficient method of giving with significant benefits to the donor. These assets often have a relatively low cost basis (e.g. At a simple level, you can deduct up to 30% of your annual adjusted gross income for the value of a stock donation. The Tax Benefit.

Stock 114
article thumbnail

6 Best Practices to Set Up an ESOP for Your Business

Up and Running

Employee retention, for both startups and established businesses, is more important than ever. An ESOP, or an employee stock ownership plan, is a type of compensation plan that allows employees to acquire and own stock in your company. Remember, an ESOP is not the best option for every business.

Vesting 88