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The Five Steps You Should Take To Keep Startup Employee Turnover Low
“The minute you tell your employees they’re going to minimum wage, they’re going to start looking,” my friend and mentor Dave said to me.
Earlier that day in our board meeting, one of our investors suggested that we shut the company down because we were out of money. We already had one new investor committed to investing in our next round of funding, and we had four other investors just about ready to commit.
However, none of that mattered to ‘Raul”. I was not expecting Raul to suggest shutting the company down. However, I was in the moment, and I suggested that we move everyone to minimum wage for the next six weeks.
Then, I kinda sorta begged. I said, “It will drive me insane for the rest of my life if we stop now when we are so close to closing the round. We will be able to play out our hand with these potential investors over the next six weeks if we keep going.”
I held me breath, waiting for the response. Much to my surprise, the investors agreed to my request.
