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By Abby Sorensen, Chief Editor If you ask any software application business to spell out business-related headaches, you'll likely see "drawing in and retaining talent" on the list. It's why many executives I speak with aspire to tell me about their software business's culture. And it's why I wasn't surprised to get an e-mail from a reader previously this week asking if we had any content about employee bonus structures.

I connected to a couple of CEOs and creators of effective software application companies to see how they approach benefits. Here's what they needed to state. Our bonus structure is flat, meaning it's not role based. Our line of thinking was salaries are function and value based, however the bonus offers are not.

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Today, we have about 40 non-founder staff members. So, whatever the quantity is we take 5 percent and after that divide it by the number of non-founder employees. This keeps workers engaged and knowing that the success of the company has a direct effect on their wallet. Certainly for  Official Info Here  (ex.

But we have not seen (and we've looked) for displeasure from the staff. We like the method we do it and will likely continue. ----- For the longest time (prior to me becoming a CEO) my business had the custom of providing out year-end bonus offers to all employees, other than the ones that have commission as part of their remuneration.

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The rewards had absolutely nothing to do with performance of the business, which was a recognized fact. One modification that I presented as quickly as I began is that all workers receive a benefit, whether they have commission for their compensation or not. This is due to the reality that employees with a base + commission structure have a lower base income.

Another change included business efficiency (cashflow-wise) into the decision-making process of issuing rewards. If the company is not carrying out well (unfavorable cashflow), then giving out perks has 2 main problems: 1. It makes the unfavorable cashflow bigger (that makes any action prepares harder to execute). 2. It shows to the workers that everything is okay (when it is not).