Ppt 3

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Ppt 3

  1. 1. Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema
  2. 2. It’s Movie Time !! <ul><li>“ Dirty Work” </li></ul><ul><li>< What a great business idea > </li></ul>
  3. 3. How does this pertain to start-ups? <ul><li>Every company starts with one great idea. </li></ul><ul><ul><li>Their idea was generated by market demand. </li></ul></ul><ul><ul><li>The events that come next are typically the hard part. </li></ul></ul>
  4. 4. Any ideas for a start-up? <ul><li>If this process were easy, wouldn’t everyone own their own company? </li></ul>
  5. 5. How are we going to break this issue up? <ul><li>Employers Perspective </li></ul><ul><li>Employees Perspective </li></ul><ul><li>Two viewpoints of the situation are better than just one!!! </li></ul>
  6. 6. What are employers of start-ups searching for?
  7. 7. We Need Employees! <ul><li>What Are We Looking For? </li></ul><ul><ul><li>Motivated </li></ul></ul><ul><ul><li>Dedicated </li></ul></ul><ul><ul><li>Independent </li></ul></ul><ul><ul><li>Knowledgeable </li></ul></ul><ul><ul><li>Open Minded </li></ul></ul><ul><li>How Do We Obtain This? </li></ul><ul><ul><li>Intrinsic Rewards </li></ul></ul><ul><ul><li>Extrinsic Rewards </li></ul></ul>
  8. 8. What Else Do We Consider? <ul><li>Legal Considerations: </li></ul><ul><ul><li>Wage withholding </li></ul></ul><ul><ul><li>Payroll Tax Accounts </li></ul></ul><ul><ul><li>Employer I.D Number </li></ul></ul><ul><ul><li>Workers Compensation and Insurance </li></ul></ul><ul><ul><li>Compliance with FLSA </li></ul></ul>
  9. 9. How to Compensate Beyond the Legal Minimums <ul><li>Employer must decide what to offer (Afford): </li></ul><ul><ul><li>Base Pay </li></ul></ul><ul><ul><ul><li>Salary vs Hourly Rate </li></ul></ul></ul><ul><ul><li>Stock Options </li></ul></ul><ul><ul><li>Health Benefits </li></ul></ul><ul><ul><li>401 K Plans </li></ul></ul><ul><ul><li>Vacation Packages </li></ul></ul><ul><ul><li>Combinations </li></ul></ul>
  10. 10. Why is compensation important? <ul><li>Tons of new start-ups </li></ul><ul><ul><li>Generated from the Dot-Com boom </li></ul></ul><ul><li>Start-ups are offering non-traditional as well as traditional compensation systems </li></ul><ul><ul><li>Stock options </li></ul></ul><ul><ul><li>Anything to entice the prospective employee </li></ul></ul><ul><li>The current down-turn in the economy </li></ul><ul><ul><li>Skepticism of compensation within start-up is very high right now </li></ul></ul>
  11. 11. It’s Movie Time Again!! <ul><li>“ Boiler Room” </li></ul><ul><li>Isn’t this what every employee is looking for? </li></ul>
  12. 12. What Are Employees Looking For?
  13. 13. What Are Employees Looking For?
  14. 14. Why would you join a start-up company? <ul><li>Endless opportunity for advancement </li></ul><ul><li>Becoming a major owner in the firm </li></ul><ul><li>Having a voice in the company </li></ul><ul><li>The chance to make a difference </li></ul>
  15. 15. A Company That Did It Right
  16. 16. JetBlue <ul><li>Beginnings </li></ul><ul><ul><li>David Neeleman </li></ul></ul><ul><ul><li>February 11, 2000 </li></ul></ul><ul><ul><li>Investment Capital: $130 Million </li></ul></ul><ul><ul><li>100% First-class </li></ul></ul>
  17. 17. Employees <ul><li>Want great costumer service </li></ul><ul><li>“ Real enticements to come from the inside out.” </li></ul><ul><ul><li>Motivated by intrinsic… </li></ul></ul><ul><ul><ul><li>Work-life balance </li></ul></ul></ul><ul><ul><ul><li>Elimination of Titles </li></ul></ul></ul><ul><ul><li>… and extrinsic rewards </li></ul></ul><ul><ul><ul><li>Comprehensive pay and benefit package </li></ul></ul></ul>
  18. 18. Compensation at JetBlue <ul><li>Market matched compensation strategy </li></ul><ul><li>Benefits </li></ul><ul><ul><li>Medical/dental/life insurance </li></ul></ul><ul><ul><li>Short-term disability </li></ul></ul><ul><ul><li>EAP’s </li></ul></ul><ul><ul><li>401 K plan’s </li></ul></ul><ul><ul><li>Profit sharing </li></ul></ul><ul><ul><li>Stock purchase plan </li></ul></ul><ul><ul><li>Paid time off </li></ul></ul><ul><ul><li>Flight benefits </li></ul></ul>
  19. 19. What Have We Learned? <ul><li>Get lots and lots of start up capital </li></ul><ul><li>Be knowledgeable on how to compensate and motivate </li></ul><ul><li>Watch the dough roll in!!! </li></ul>

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