What's the best way to motivate employees?
- Higher base salary
- KPI-based bonus
- Stock options
- Flexibility & work from home
- Company mission & values
Of course, most companies rely on a mix of these. But if you had to choose only one option?
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Much thanks to you ever so for you article.Thanks Again. Fabulous.
If I had to choose one, it would be flexibility and work from home, but only if I had a great team with open communication.
I'm very motivated to go the extra mile when I have the freedom to organize my time in the most productive window of the day for me. And knowing that my team and CEO trust me to do the work I have been assigned is genuinely inspiring.
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as someone early in their career working in entry level roles, mentorship and training will weigh in more. i can imagine financial incentive takes a bigger weight for more experienced roles
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@frankie_xu1 you're right, I forgot to mention mentorship and training.
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Pay for performance if the job function is sales, starting salary below market, upper bound of salary 2x market top
KPI based bonuses for technical SMEs
stock options for value alignment across all roles
Growth opportunities- make people better than they were when they joined
Proper pay or flexibility- startups (like mine) dont have the capital to do both at the moment
Awesome discussion idea Daniel
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@dylan_merideth as I understand, you suggest a pay very dependent on the KPIs. This could be highly motivating. On the other hand you might attract only risk-loving employees. Very often this would be rather junior professionals.
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@daniel_engels I agree, while it attracts those with higher risk tolerances it also attracts high performers in the sales realm.
All of the above, as you rightly said. Plus, I'm adding another, a bit novel, option to the discussion:
A share of future cashflows, like a royalty, limited based on the employee's contributions in the past and the present.
This is enabled by VenEx, a SaaS product we just launched to this community today!
I'm not sure if this is "the best benefit", but it could be one of the best ways to build motivation and ownership in a way employees can visualize real wealth-creation from the company's growth, esp. if the returns from stock options are too far out and unpredictable.
Let us know what you think of it!
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The real key, I think, is to customize these things so that you're appealing broadly to employees. First and foremost, invest in them and show them that you as a founder value and trust them. Create a company that values its employees and they will rise to meet the challenges. Of course, incentivizing is important (and tying their interest to those of the company through equity stakes and options is ideal). But, money doesn't matter if they don't feel committed to the company and that only comes through building the relationships and investing in them as individuals.
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I think values and making a good and fun working environment. People will leave if they are not happy at work even though they are getting paid well.
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@jsteneros I heard many investment bankers leave after several years for this reason
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Proper recognition, KPI-based bonus, and flexibility of working hours.
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I don't think of 'flexibility & wfh' as motivation - more a cultural benefit.
For me, the team is the motivating factor. Knowning everyone is pushing as hard as they can to build something amazing is what makes me want to be better.
I think it is better to explicitely distinguish motivated vs just relyable employees.
In general people get motivated and encouraged by opporunity of future perks.
So if something is not guaranteed by general rules then it can motivate someone to achieve it via doing their job great.
KPI-based bonus and value of stock options is not guaranteed so it could motivate employees to work harder whereas salary and work from home is already given to them and is not considered as something that depends on your effort.
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@alexander_gridnev In a big company, you don't necessarily need all of the employees to be exceptionally motivated to make profits. In a startup, it might be a vital necessity to survive.
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