FairSetup really addresses three primary pain points: capital, culture, and management. We also have segmented our market into start-ups, growth, and established companies.
Start-ups are generallycomprised of small teams.
- Capital is a huge pain point for them, however they do not care much for culture and management due to small team size.
Growth Stage companies are affected by all of the pains mentioned above.
- Capital: they need to spend money to make money and capital is the primary limiting factor in their ability to scale.
- Culture: culture begins to be affected by people being hired on salaries rather than equity.
- Management: mid-level management driven by different incentives begins to enter the system.
Established Companies already have revenues, so capital is not as much of a problem. However:
- Culture: employees begin to feel like cogs. Because compensation is disconnected from the company bottom line in any profound way, individuals do not feel appreciated and see no way to impact and be compensated for their work. Behaviors can range from apathy, to “passing the buck”, to frustration.
- Management: with multiple layers of management, the organizations falls at the mercy of quality of management talent.
For example, consider a trading firm. Capital is not a problem. However, managing employee expectations, deciding on bonuses, ensuring systematic review, and keeping employees happy are major issues. Solutions, such as forced ranking (also known as “Rank and Yank”) are seen as a lesser evil.
FairSetup, however, among other things:
- provides a straightforward justification for compensation (for both internal and external purposes)
- ensures a transparent promotional structure
- systematizes performance reviews
- connect performance to compensation in a mathematically clean manner
- builds a sense of co-dependency among individuals across the organization