Performance Management at Startups

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Performance Management at Startups
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  • Performance Management At Startups

  • [Performance Management](,Performance Management,Giving,-and receiving performance feedback is a crucial part of career development. In startup culture%2C where things move at a frenetic pace%2C it doesn’t make sense for anyone to wait a year to find out where they stand in terms of performance. Employees need constant feedback so they can adjust their behavior and make improvements or modifications. If no feedback is given by managers or peers for an entire year%2C too much time goes by without feedback and without alignment on goals and how to measure success.)

  • [Goal Setting… The New OKR](,GOAL SETTING… THE NEW OKR,There are strong business reasons to set goals%3A,-Organizations that use formal goal setting exercises are 3.5X more likely to be in the top tier of financial performers every year.)

  • [Getting Feedback]( FEEDBACK,Getting feedback)

  • 1:1 Meetings - A Good Place To Get Feedback,1%3A1%20MEETINGS%20%2D%20A%20GOOD%20PLACE%20TO%20GET%20FEEDBACK,-For%20starters%2C%20managers%20should%20be%20having)

  • [Giving Feedback](,GIVING FEEDBACK,Giving)

  • [Performance Management Tools](,Performance Management Tools,Performance Management,-Tools help companies align their resources%2C systems and employees with their strategic objectives and priorities. In simpler terms%2C they offer a way to gather and calibrate feedback for employees and set and track individual and company goals.)

  • [How Performance Impacts Compensation](,How Performance Impacts Compensation,Homebrew,-advises startups to adhere to a simple philosophy around compensation increases or raises. Unless an employee’s job changes%2C his or her salary shouldn’t change. Raises should be given when there is a promotion or change in scope of someone’s role.)

  • [Bonus Plans](,BONUS PLANS,Employees,-in non-revenue generating roles (everyone but salespeople) will likely not have an individual or company bonus as part of their compensation plan. Startups are usually cash constrained and employees are rewarded with equity%2C which is a longer term incentive. Once a company becomes profitable%2C then it is time to set up a company wide bonus plan.)

  • [Spot Bonus Plan](,SPOT BONUS PLAN,Spot)

  • [Peer Bonus Plan](,PEER BONUS PLAN,Some companies)

  • [Stock Refresh](,STOCK REFRESH,Additional,-equity grants (otherwise known as refresher grants) should be based on performance and not awarded until an employee’s 2 year anniversary (assuming there is no change in title or performance). Seniority is a factor to consider. We recommend refreshing employees at the Director level and above at the 2 year mark and below the Director level at the 3 year mark. The most important thing is to have a defined philosophy around compensation and equity upfront. Be consistent and do not be afraid to enforce this policy.)

  • Final Thoughts….-,Final%20thoughts%E2%80%A6,The)