We Need Employees! What Are We Looking For? Motivated Dedicated Independent Knowledgeable Open Minded How Do We Obtain This? Intrinsic Rewards Extrinsic Rewards
What Else Do We Consider? Legal Considerations: Wage withholding Payroll Tax Accounts Employer I.D Number Workers Compensation and Insurance Compliance with FLSA
How to Compensate Beyond the Legal Minimums Employer must decide what to offer (Afford): Base Pay Salary vs Hourly Rate Stock Options Health Benefits 401 K Plans Vacation Packages Combinations
Why is compensation important? Tons of new start-ups Generated from the Dot-Com boom Start-ups are offering non- traditional as well as traditional compensation systems Stock options Anything to entice the prospective employee The current down-turn in the economy Skepticism of compensation within start-up is very high right now
It’s Movie Time Again!! “Boiler Room” Isn’t this what every employee is looking for?
JetBlue Beginnings David Neeleman February 11, 2000 Investment Capital: $130 Million 100% First-class
Employees Want great costumer service “Real enticements to come from the inside out.” Motivated by intrinsic… Work-life balance Elimination of Titles …and extrinsic rewards Comprehensive pay and benefit package
Compensation at JetBlue Market matched compensation strategy Benefits Medical/dental/life insurance Short-term disability EAP’s 401 K plan’s Profit sharing Stock purchase plan Paid time off Flight benefits
What Have We Learned? Get lots and lots of start up capital Be knowledgeable on how to compensate and motivate Watch the dough roll in!!!