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Growing Your Business by Scott Shane, Robert Baron

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Retaining High-Performing Employees

Good people are always in demand, so new ventures face the same problem that all companies do: how to retain high-performing employees. Doing so is especially crucial for new ventures for two key reasons: (a) Replacing good people requires time and other precious resources that the new venture can ill afford, and (b) when they leave, they might take important information with them—perhaps to competitors! For these reasons, it is truly important for new ventures to retain their key employees. Many strategies can be useful in this regard, but two are most important: (a) developing excellent reward systems and (b) building a high level of commitment and loyalty among employees. These two strategies are related, ...

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