CHENNAI : A startup is nothing if not a collection of passionate workforce striving to create something extraordinary, something that will outlive them all. The core team members are like the soldiers of the army. And like the army’s king, an entrepreneur must know how to keep his most passionate people with him at all times. A startup will always go through crests and troughs and if the team is not able to stick together, they probably won’t make it through the difficult sails.
And the difficult times will also include moments when the best of the soldiers want to quit the organization. How do you retain them or keep them from quitting you in the first place? Here’s how:
● Know whom to retain.
Firstly, it is important to know who are foot soldiers of your camp and who are your ministers. Who are the brawn that could be replaced and who are the brains that cannot be. Pareto principle can help you with this too. Only 20% of any startup’s workforce is responsible for pushing the startup ahead 80% of the times. And these 20% are your gold. When you get them, retain them.
● Having Esops policy
A startup is a big dream. Let your team invest in your dream. Give them Esops. Usually it is a good strategy to keep 10% of your share capital for Esops purpose. While it is good to get them vested over time, it would be a sweet deal if the employees could get some percentage vested in first year as well.
● Distributing Esops
The 20 per cent of your strategic workforce totally deserves your Esops. But don’t wait for them to quit, before you had out the bunch. Give them their esop document right then in hand. It is difficult for anyone to throw anything knowing that it will turn to gold soon. On the other hand if it is a mere promise or verbal commitment, it may not drive them enough.
●Pay structures vs Designations
If you are a series B or further startup , you can give disproportionate salaries to your core team so that no one even has the option to leave you. But if you are just series A or lower, at least try handing out fancy designations that they cannot afford elsewhere. Knowing that they have made it pretty young will keep them on top of their social circle and therefore motivated to be a part of your startup.
● Company culture
A startup is like a family. A win is everybody’s win and a loss is everybody’s loss. Maintaining healthy relationships will also be one of your core responsibilities as a founder. Organize team events, recognize team efforts, award and reward where appropriate. Let no one feel that their work is going unnoticed or isn’t valuable.
Hope today’s article has helped answer some of your questions regarding employees retention.
For anything else write to me on tamhankarrajeev@gmail.com.
