As your Long Island business grows, there’s an underlying asset which propels your growth: your people.
Now, for some of my clients, “people” mean, well … you. But even in that case, what I have to say today will still matter.
Because what I’m talking about today matters just as much for YOU. We’re talking compensation. Wages. Salaries.
How you handle these matters will propel you, AND the other people at your company toward success in their respective roles. Of course employees will hopefully somewhat enjoy their work on a day-to-day basis. But if they are well-compensated for their efforts … that’s an added bonus that shows your employees are respected and taken care of.
So, let’s dive in.
Developing An Employee Compensation Plan For Your Long Island Organization
“When we give cheerfully and accept gratefully, everyone is blessed.” -Maya Angelou
Now, before we examine three components to consider when making a compensation plan, I want you to know there are serious tax implications in regard to each of these areas.
Let me be clear: if your Long Island business needs any help assessing the state of your employee compensation methods, and the ensuing tax implications, please give me a call. (516) 442-4579
I’d love to schedule a meeting and discuss how your business can help employees while staying within IRS guidelines.
Salaried v. Contracted
This may seem like a simple clarification, but many businesses skirt the issue. Some of those companies? They’re now in a mess that directly affects their employees … or are they contractors? Who knows.
It’s also important your business adheres to federal and state laws about minimum wage, paid leave, sick days and so on. There might be laws your team is unaware of, and it’s one more thing to get up-to-date on before hiring new employees. This might be more of an HR lawyer conversation, but it’s another topic I’d love to at least begin to address with you.
The Case for Transparency
Many organizations, to avoid arguments surrounding wage and pay gaps, are becoming more transparent about salaries across the board.
I’m not sure where your business stands on the “transparency” side of things, but it’s important each of your employees feels valued and taken care of. In addition, you need to have some sort of system in place for raises and promotions.
Think about it.
Employees work better when they have set goals they’re working toward. If they have, from day one of employment, clear goals charted out to earn raises and promotions, it will give them something to strive for each day at work.
There’s a word for that: motivation. And it helps grow businesses fast.
Your Employees. Their Equity.
More and more startups are examining this unique way to attract talent and retain quality employees over the long haul.
Allowing employees a percentage of equity in your company will make room for some serious skin in the game. The concept might seem risky, but if you’re seeking intense growth and talent for your business, then think about spreading some equity love.
The end result is that you’re conveying trust in the employees you worked hard to hire … and want to keep.
Do you implement any of the aforementioned compensation strategies? What’s working well for you? What could change?
I’d love to hear your feedback, especially if your business is on the forefront of income innovation.
I’m grateful for our chance to serve you and your business — and we are dedicated to its success. Which means we are here to keep you focused on what really works.
Feel free to share this post with any of your Long Island business associates or clients you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners.
Pierre-Louis & Associates CPA, P.C.