It's pretty hard to motivate part time remote staff on Equity. Any suggestions would be greatly appreciated.
Interesting dilemma! I’ve never managed staff on equity only but I have managed part-time remote staff and a large sales team which in itself, is a challenge!
I might be wrong here but I’m assuming you’re running a start up or a young company if you’ve hired part-time remote staff on equity?
If I were to put myself in one of your teams shoes, one thing I’d expect is to have access to are the wider company’s financial progress on a regular basis. I appreciate that can be tough from a founders perspective as it’s not always comfortable sharing those details openly. Saying that, by providing some form of regular updates whether it be on investment rounds you’re working on, any commercial deals etc, it shows you’re committed to growing the company and thus increasing their share value which would translate in increased commitment and motivation. Perhaps a regular group video conference call involving everyone?
Commercial gain aside, something else I’d suggest would be to focus on their individual career goals and professional development. Assuming it’s suitable for your staff based on your business and of course you have the bandwidth to do this. Caring personally about your staff (part-time or not) is really powerful and can lead to those extra motivation levels. Have you created or implemented development plans for your staff? Have you ever asked the following questions:
What motivates each person on your team?
What are their long term ambitions?
What are their motivations and goals in life inline with their current position?
Why do they care about their work?
What they want out of life?
You don’t need to provide them with meaning but getting to know them personally and then developing them inline with such questions above will really help them feel valued and in turn, committed to their role whether it’s equity based or not.
I hope the above helps but feel free to reach out if you want to speak or have any further questions.
1. make a connection between per project and equity allocation - so each time they complete a project, they get a small % of equity. Research has shown that people prefer small payouts than one big payout at the end (ppl can't postpone their desires...).
2. Keep them involved in the decision loop and share with them small successes. Make them feel part of the company/business.
3. Give out additional 'bonuses' for projects done well or for milestones achieved by the company.
4. If you have the capital/money to support it, then make it clear that they can exchange their equity for money - if a company is willing to buy back it's equity, this shows that the equity has value - which will make them want to keep it. The only challenge with this last option is that if you do buy back shares, it creates a tax event for both sides which isn't always advised.
There are a few additional options.
I've successfully helped over 300 entrepreneurs and would be happy to help you. After scheduling a call, be sure to please send me some background information so that I can prepare before - thus giving you maximum value for your money during the call itself.
When you say 'on equity' do you mean you have an equity pool you're using as motivation? And you're experiencing less motivation in your part time team members than your full time team members?
In my experience (we have a 10% equity pool for the team) it is a small part of the puzzle. When it comes to having an engaged, motivated and effective team for me it has all come down to finding the right fit up front, and then me being the leader and visionary on an ongoing basis. In terms of culture that works well for us I've found full-flexibility (with unlimited leave, as long as their job gets done, I'm happy) and a high level of empowerment, trust and autonomy around their role, to be a bigger motivator than equity or money.
I think the remuneration package (including equity) sweetens the deal for sure, and when structured correctly can be a great contributor to motivation, however it seems to be more of a support piece than the main factor.
Hope that helps!
Well, people who do remote jobs, I think one factor that needs to be taken into account is concentration and focus. I always advise staff to look for a very quiet place with good lighting, as in the late afternoon, as the sunset is always inspiring.
The suggestion is to make employees feel important, so important that the work will be done in the best way and that they may not even realize it, because the best songs and the best texts were made that way! Nothing works under pressure.