What is a startup compensation philosophy?
A solid compensation philosophy is critical for startup growth. Once you start hiring employees, you need to determine how to pay them. While many startups compensate without much consideration, the result is a level of inconsistency that creates confusion and potential resentment. This article will explain what a compensation policy is, why it matters and…
What should founders know about startup employment law?
The main issues a founder should be concerned with are the following: classifying employees correctly; aligning pay and benefits with local laws; ensuring processes throughout the employee life cycle comply with federal, local and international laws (hiring, firing, managing complaints and company secrets); ensuring that their handbook evidences adherence to these laws and is, thus,…
What’s the difference between an independent contractor and an employee at my startup?
One of the critical decisions you’ll make when growing your startup is how to classify your workers. Are they employees or independent contractors? It’s not just a question of title — it affects legal responsibilities, financial obligations and worker rights. Though this article will give you a general overview of the concept, it’s important to…
Should my startup hire someone as an employee or a contractor?
When it comes to hiring someone for your startup, you can pursue one of two workforce strategies: hiring an employee or a contractor. Both have their advantages and disadvantages, but your choice depends on what your needs are, what your budget can accommodate and the constraints of relevant labor laws. This article compares employees and…
What are the risks of a startup misclassifying a worker as a contractor instead of an employee?
In their quest for flexibility and agility, startups may sometimes misclassify workers as independent contractors rather than employees. Unfortunately, this misstep carries serious legal and financial risks. This article discusses the risks that startups face when misclassifying workers and the legal, financial and competitive consequences that can ensue. Startups should work with Human Resources professionals…
How do I draft a good startup employment offer letter?
If you’re running a startup, drafting employment offer letters is an essential part of building a team. A good startup employment offer letter should clearly outline the terms of employment, including job responsibilities, compensation, equity and other important details that are used to propose a position to a future employee. This agreement sets the conditions…
How do I draft a good startup independent contractor agreement?
Before early-stage startups have funding to hire a team of employees, the team usually consists of the founders and a number of independent contractors. Since these contractors are building the minimum viable product and laying the foundation of the company, it’s important to get the contract right. Every startup should have a solid independent contractor…
What’s the difference between an exempt and nonexempt employee?
Startups are known to live by the mantra “Move fast and break things.” However, that should not apply to employee classification. Correctly distinguishing between exempt and nonexempt employees is essential to avoid potential legal issues and sustain a productive and compliant work environment. This article explains the difference between exempt and nonexempt employees and why…
What agreements should startups have with their employees?
A startup’s greatest strength is its team, and the foundation of this team’s success starts with employment agreements. These documents for startups establish clear expectations and maintain a positive employer-employee relationship. They help reduce misunderstandings and legal risks by providing clarity and transparency, ensuring that both parties understand their rights and obligations, and reducing the…
What are common compensation mistakes startups make?
Startups often lack the resources and expertise to properly research and establish competitive compensation structures, leading to errors in determining fair and competitive pay. Limited budgets and evolving organizational needs can result in inconsistent or unequal compensation practices, which may hinder talent acquisition and retention. Developing clear compensation structures and regularly evaluating market trends can…
