Every business has faced a tough situation when they were just starting and needed to hire qualified employees. Young companies need to manage everything with a tight budget, where paying employees becomes a big headache for the authority. However, you still need a team to run the business. Here are some ways how startups can pay employees alternatively.
Interns are newbies with no or very little experience. After completing graduation or course, they look for opportunities to work in a suitable organization. Note that salary is not the primary focus of most interns. They want to work for an organization to gather experience and understand professional life. In that sense, interns can be the best people to hire for a startup. Since your business is fairly new and has a tight budget, you can hire potential interns so that both of you can grow simultaneously.
Hire stay-at-home people
Your startup may not need a full-time employee in the beginning. So, hiring a part-time employee can be a very good option. In that case, people like stay-at-home moms and dads are ideal people to pick. Many people like them prefer to spend time with their infants. Besides, they look for an opportunity to work as a part-time employee for any company. Don't be afraid to hire someone like that because some of them are really experts, even you can find some retired professionals as well. However, you need to pay them sufficiently so that they can support their dependents.
Offer them stocks
Offering stock is a new trend in some business in tech world. It is an excellent alternative way to pay startup employees or can be offered along with the regular salary. Though it has both pros and cons, we should understand how it may benefit a startup company. Since there is no extra cost for employees, it allows more free cash to invest for the company. In some cases, it has been seen that employees are more motivated when companies offer stocks rather than high-salary. Besides, it is a good strategy to keep a strong bonding between the company and employees.
Pay based on performance
Performance-based payment is a widely used paying model for the sales team. However, this can be applied to other departments of your company as well. In this approach, you only have to pay employees when they add value to your company. It helps to have better employee engagement in a company. Many companies are going to this approach because of its cost-effectiveness and reduced turnover. Besides, startup founders say that it ensures better recruiting and more productive employees.
Don't be confused while comparing between a freelancer and a stay-at-home employee. Freelancer employees are highly professional and most of them do it as their full-time job. If you have a short-term project where hiring a full-time employee can be costly, a freelancer is an ideal person to execute it. Involving a professional freelancer in a short-term project would be more productive and cost-effective.