The most valuable assets of just about any growing business are its key employees. Compensating them properly – rewarding and motivating key people – is critical to the ongoing success of your business. But how can you afford to do that when the business is young and money is tight?
Go beyond salary. Compensation can come in a variety of forms. In addition to salary, consider a bonus plan, deferred compensation plan, and/or supplemental insurance.
In setting your salary, you need to straddle the line between receiving adequate compensation and keeping the business financially healthy.
An executive bonus plan can do double duty, providing compensation and a form of performance incentive and reward for key employees.
Deferred compensation can be a great way to help retain your most valuable employees without breaking your current budget.
These can include a wide range of insurance coverage. They are tax deductible for your business and excludible from your key employees’ income.