To keep high-performers, beyond giving them equity, you must explicitly map out their trajectory. Galloway advises sitting down with employees to define their position, responsibilities, and financial standing three years into the future. This clarity on growth and demonstrated investment in their success is highly "intoxicating" for ambitious individuals.
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When a top engineer planned to leave to found a startup, Amplitude retained him by giving him autonomy to build his own project (AI Visibility). They offered a safe space to learn "while getting paid" and promised to fund his future venture, turning a potential talent loss into a massive product win.
Granting stock options is only half the battle. To make equity a powerful motivator, leaders must constantly communicate a clear and believable narrative for a future liquidity event, such as an acquisition. This vision is what transforms paper ownership into a tangible and valuable incentive in the minds of employees.
Most companies have a structured process for budgets and strategy but treat talent management as an afterthought. Implement a "people calendar" that systematically addresses attracting, developing, and engaging talent with the same discipline. This ensures people, your most critical asset, are managed proactively.
Tying SDR promotions to time-in-seat fosters stagnation. Instead, create a clear, multi-level roadmap where advancement is based solely on hitting performance thresholds. This model rewards high-achievers, provides constant motivation, and gives reps control over their career trajectory.
To conserve cash, especially in a downturn, founders can pay key employees 10-30% below market rate in salary. The key is to compensate for this deficit by offering double or triple the industry standard in equity. This strategy attracts top talent aligned with long-term success while keeping the company's cash burn rate low.
When planning for the business's future without you, prioritize the stability and job security of your team. Confident and secure employees are the best guarantee that your clients will be taken care of, creating a more resilient and sustainable legacy.
Premira fosters an entrepreneurial culture where even junior employees are encouraged and supported to identify new investment themes, source potential deals, and see them through. This autonomy acts as a powerful retention tool, creating a path to career-defining wins.
Barry Diller dismisses the common belief that stock options retain employees, calling it "hogwash." He argues people stay for opportunity and engaging work, not because they are waiting for options to vest. His approach is to provide opportunity and pay for performance in cash, empowering employees to invest if they wish.
Employee retention now requires a customized approach beyond generic financial incentives. Effective managers must identify whether an individual is driven by work-life balance, ego-gratifying titles, or money, and then transparently tailor their role and its associated trade-offs to that primary motivator.
Top performers' primary need is opportunities for growth, not necessarily promotion. Delegating significant responsibilities forces them to develop new skills and fosters a sense of ownership, which is more valuable than simply clearing your own plate.