Human Resources Management

Why Early-Stage Startups Should Avoid Individualized Sales Compensation: I'm frequently asked by founders about structuring early-stage GTM compensation. Having been part of foundational go-to-market teams at both Slack and OpenAI, I've witnessed firsthand the benefits of keeping sales teams on full salary for the initial few ~years. Here’s why I strongly believe early-stage startups should steer clear of individualized sales comp plans: 1/ Customer and Company First: When compensation isn't directly tied to individual quotas, team members naturally prioritize what's best for customers and the overall business. Traditional comp plans can inadvertently incentivize behaviors that aren’t aligned with long-term goals. A full salary ensures a mindset of "customer first, then company, then self." 2/ Enhanced Collaboration and Mentorship: Without the constant pressure to meet individual targets, salespeople can dedicate more time to mentoring teammates, developing playbooks, and contributing to company-building efforts. At Slack, my early role included pitching investors, endless interviewing, crafting JDs, onboarding new hires, and numerous strategic projects—actions far more impactful to the business than simply closing deals. These are the type of behaviors you want your early GTM members focused on. 3/ Team Harmony: A unified compensation structure eliminates territorial disputes over accounts and discourages gaming of the system. It creates alignment within the team, fostering an environment where everyone consistently acts in the best interest of customers, colleagues, and the broader business. 4/ Difficult-to-Predict Targets: In early stages, forecasting accurate sales targets is incredibly challenging. Individualized comp plans based on these uncertain numbers often result in significant overperformance or underperformance through no fault of the seller. Removing comp tied directly to targets avoids unintended fairness issues stemming from unpredictable market dynamics. 5/ SPIFFs (Spot Bonuses): In my experience at Slack and OpenAI, implementing SPIFFs—spot bonuses for specific achievements—proved highly effective. These bonuses reward top performance on clear, measurable goals (like closing the largest deals), adding healthy competition without undermining the team’s overall alignment around base salary. It's essential to still have clear numerical goals to rally and celebrate around, but they don't need to directly dictate individual paychecks. Founders should provide individualized or team quotas as motivational benchmarks rather than compensation metrics. Evaluate and reward your team members through regular performance conversations based on their comprehensive contributions—just as you would any non-sales role.

In most boardrooms, the agenda is dominated by financials, strategy, and market risks. Yet one of the most critical risks rarely gets equal airtime: talent risk. And here’s why it matters, because talent risk is strategy execution risk. It’s easy to assume people will perform, stay loyal, and execute the strategy. But reality is more complex: • Key leaders quietly burn out • High performers leave without warning • Critical roles go unfilled for too long • Capability gaps widen faster than succession pipelines can keep up Boards often miss these signals because they’re measured by headcount or retention numbers, not by what really matters: alignment, capability, and engagement. I’ve seen this play out first-hand. In an organization I was part of, a C-suite role in a critical department saw extremely high turnover. The role was deeply strategic, shaping the very direction the company took. Every transition in that seat disrupted momentum and yet, the board did not look at the deeper capability risk behind it. The truth I’ve seen across organizations is this: talent risk isn’t just about who might leave tomorrow. It’s about whether the people in place today have the alignment, capability, and resilience to deliver the future strategy. A disengaged executive team, a thin succession bench, or unaddressed skill gaps can quietly derail growth long before they show up in financials. For boards, that means elevating talent risk into the enterprise risk management (ERM) framework and treating it as a standing governance priority. This isn’t about micromanaging HR,  it’s about oversight, accountability, and fulfilling fiduciary duty. Boards can bring real value when they press on questions like: → Which roles are truly business-critical to executing next year’s strategy? → Where are the succession blind spots, especially at leadership level? → How resilient is our workforce to external disruption, demographic shifts, tightening talent pools, or regulatory changes? → Do we, as a board, have enough visibility into these issues to govern effectively and protect enterprise value? Unchecked talent risk doesn’t just slow execution,  it undermines resilience, erodes market confidence, and ultimately impacts shareholder value. Boards that surface talent risk early don’t just protect the business. They strengthen long-term competitiveness by ensuring strategy has the people strength to succeed. So here’s the challenge I’d leave with every board: 👉How are you keeping talent risk visible in the boardroom before it becomes a business crisis? #TalentRisk #BoardroomAgenda #LeadershipStrategy #WorkforceResilience #EnterpriseRisk

What you pay is one of the most critical parts of how your people's experience. Often I find companies can approach pay from too clinical or analytical an approach, but for your people, pay is a deeply emotive topic. The best companies consider this and take a balanced approach. But what do you get when you're at either end of the spectrum? What does balanced look like? 📊 The Analytical Extreme: • Rigid adherence to data and metrics. • Formulaic pay increases based on predefined criteria. • Lack of transparency, creating uncertainty about pay decisions. ❤️ The Emotional Extreme: • Decisions influenced by favouritism or personal biases. • Reactive compensation strategies, like counter-offers. • Ignoring market standards, leading to uncompetitive pay structures. 🔄 The Balanced Approach: • Data-informed decisions, tempered with individual performance and contributions. • Transparent communication about how pay decisions are made. • Recognising employees through both financial and non-financial means. • Regular reviews to adjust compensation, aligning with market changes and individual growth. • Encouraging employee feedback in compensation strategy. • Aligning pay practices with your company values and broader business strategy. How else can companies balance themselves and their people on this spectrum, and deliver a great experience on pay? --- Hi, I'm Matt 👋 - I help startups build compensation strategies that drive talent and performance. If you enjoy my content, follow me Matt McFarlane for regular updates.

Real Talk: Managers often distract their employees, impacting productivity. If you want your team to be more efficient, try these four simple steps: 1. Talk About Distractions Encourage open conversations about distractions without making employees fear consequences. This creates a safe environment where they can share concerns and find solutions. 2. Sync Schedules with Employees Get to know how your team spends their time. Use shared calendars to set distraction-free periods, helping everyone to focus without unnecessary interruptions. 3. Only Hold Meetings with an Agenda Ensure every meeting has a clear agenda. This keeps meetings focused and efficient, cutting down on unnecessary gatherings and respecting everyone’s time. 4. Lead by Example Show indistractable behaviour yourself. Make time for focused work and avoid interrupting others during their productive periods. Your actions will set the standard for the team. What steps will you take today to help your team stay more focused? #leadership #culture #management #mindset #growth #leadershipdevelopment #success #productivity

You can't negotiate what you don't understand. Whether you're hiring or getting hired, these 12 compensation terms matter: 1. Total Compensation Everything an employee receives...salary, bonuses, equity, benefits, perks. This is what actually matters when comparing offers, not just the base number. 2. Base Salary Fixed pay for regular work hours. Excludes overtime, bonuses, and variable pay. The foundation everything else builds on. 3. Variable Pay Compensation that changes based on performance, sales targets, or company results. Commissions, bonuses, profit-sharing all fall here. 4. Benefits Package Non-wage compensation...health insurance, retirement plans, PTO. Often worth 20-30% of base salary but rarely calculated properly. 5. Salary Range The minimum and maximum pay for a specific role. Essential for internal equity and external competitiveness. 6. Cost of Living Adjustment (COLA) Wage increases to offset inflation and maintain purchasing power. Different from merit-based raises. 7. Deferred Compensation Pay earned now but received later. Retirement contributions, stock vesting schedules, sabbatical programs. 8. Equity Compensation Ownership stake through stock or stock options. Can be worth nothing or everything depending on company performance. 9. Performance-Based Pay Direct tie between individual or company results and compensation. Bonuses, profit-sharing, commission structures. 10. Paid Time Off (PTO) Bank of hours for vacation, personal days, sick leave. Can be accrued, front-loaded, or unlimited. 11. Fringe Benefits Perks beyond standard benefits...company cars, gym memberships, childcare assistance. Nice-to-haves that can influence decisions. 12. Compensation Benchmarking Comparing your pay rates to market standards. Critical for staying competitive and maintaining internal fairness. TAKEAWAY: Compensation is more complex than most people realize. Understanding these terms helps you design better packages, negotiate more effectively, and avoid costly mistakes. Whether you're hiring, being hired, or managing a team...this vocabulary matters.

The only people who will remember the late nights you spent working are your family, friends, and yourself. (This is a reminder to think bigger than just your work!) Time is our most precious gift. But how do we get it back, without sacrificing our careers? Over 99% of workers could work 2–3 hours less each day and accomplish more. The secret lies in optimizing productivity. So, how does a company and individual achieve this? 1️⃣ Shift the focus from hours to output. Companies need to reward high-performing employees, giving them the option to work less or earn more. 2️⃣ Educating yourself and your employees on optimizing productivity. The Pinnacle of Productivity is Achieving Flow: Being fully immersed in your work allows you to 5X productivity. When your brain operates at 100% efficiency, time becomes your ally. Here are six actionable steps to help you achieve a flow state and supercharge your productivity: 🔒 Minimize distractions. Turn off notifications. Set boundaries with colleagues. Create a focus-friendly environment. 🎯 Set clear goals. Break tasks into manageable chunks. Every small win builds momentum. ❤️ Do work that has purpose. Find tasks that align with your values or interests. Purpose fuels focus. 💪 Prioritize your health. Good sleep, regular exercise, and hydration aren’t optional—they’re essential. 🧘♀️ Practice mindfulness. Daily meditation (10–15 minutes) trains your brain to focus and reduces stress. ⏳ Apply Parkinson’s Law. Set a hard stop for your workday. Constraints breed creativity and efficiency. Here’s the takeaway: You don’t need to choose between your career and your family. You just need to improve your productivity. If you feel stuck, consider hiring a performance coach or diving deeper into the science of flow. What’s your favorite productivity tip?

Overview of the HR Handbook 2025 Checklist The HR Handbook 2025 Checklist is a comprehensive guide designed to streamline human resource management and ensure best practices across all key HR functions. It provides a structured framework for managing employees, improving organizational efficiency, and fostering a positive work environment. Key Areas Covered: 1. Recruitment & Selection – Focuses on attracting and retaining top talent through a clear and structured hiring process. 2. Employee Onboarding – Ensures smooth integration of new hires with clear procedures and support systems. 3. Compensation & Benefits – Promotes fair and competitive compensation, including salary structures, benefits, and performance-based incentives. 4. Performance Management – Aligns employee performance with company goals through regular reviews and constructive feedback. 5. Training & Development – Encourages continuous learning and career growth through tailored training programs. 6. Employee Relations – Builds a positive work environment through open communication, conflict resolution, and employee engagement. 7. HR Policies & Compliance – Ensures alignment with labor laws and industry regulations, with regular audits and updates. 8. Payroll & HR Analytics – Streamlines payroll processing and uses data insights to improve HR strategies. 9. Talent Acquisition & Retention – Develops long-term strategies to attract and keep high-performing talent. 10. Diversity & Inclusion – Promotes a culture of respect and equality through intentional hiring and inclusion initiatives. 11. HR Technology – Enhances HR operations using technology, including automation and data privacy measures. This handbook serves as a valuable resource for HR professionals, ensuring consistency, compliance, and a high-performing workforce. It's not just a checklist — it's a roadmap for building a strong, people-focused organization.

One of the most important and tricky things for startups to get right is compensation and payroll spending—especially now, with profitability under sharper focus. Yet, clear benchmarks are often missing, leading to tough and sometimes sub-optimal decisions. The overwhelming response to our report last year on Startup Compensation benchmarking encouraged us at xto10x to publish another edition of the report that includes deeper insights and more meaningful data and benchmarks for one of the most critical cost areas in any startup’s P&L. The report themed ‘Evolving Compensation Trends- Indian Startup Ecosystem’ attempts to answer some of the common questions that founders and HR leaders repeatedly ask: - What’s the right mix of cash and equity for different roles? - How should ESOPs be structured to attract and retain talent? - How does compensation evolve as a startup grows? The report includes Compensation trends and Insights on how companies across different industries & stages have approached payroll as percentage of revenue; Fixed hikes, Variable payouts and ESOP grants in 2024-25; Levelling architectures for 8 diverse job families (Marketing, Sales, HR, Finance, Product Management Data Science, Engineering & Design) and a detailed analysis of all the compensation levers - Fixed, Variable, and ESOPs. This year, we’ve expanded the scope with deeper insights on founder and leadership compensation, more business functions, and data from more startups across sectors like Fintech, Edtech, SaaS, D2C, and more. I would like to thank all the startups which contributed to the benchmarking study. Hope this serves as a useful resource for startup teams, CHROs, and investors navigating these decisions to build a competitive yet sustainable rewards framework. Would love to hear thoughts from those who’ve been working through these challenges firsthand. The free version of the report has been provided below. For the complete report or a discussion on Total Rewards, feel free to write to us at rewards@xto10x.com. xto10x PeopleCues

How can HR policies be both comprehensive and easy to implement? Here, I'll tell you 👇🏾 Creating HR policies that are both comprehensive and easy to implement is an important goal for any organization. Here are some tips to achieve this: 1. Keep it simple: Avoid using technical jargon or complex language in your policies. Use easy-to-understand language that everyone can comprehend. 2. Make it relevant: Tailor your HR policies to your organization's culture, size, and industry. This ensures that your policies are aligned with your workforce's needs. 3. Get input from employees: Involve employees from different departments and levels in developing HR policies. Consider their feedback to ensure your policies are comprehensive and cover various scenarios. 4. Offer examples: Provide practical examples to help employees understand policies better and clarify expected behaviour or outcomes. 5. Regularly review policies: Periodically review your HR policies to ensure they are up-to-date and relevant to the needs of the organization and its workforce. 6. Communicate effectively: Use various communication channels to communicate HR policies to your employees, and make the policies readily accessible to them. 7. Provide training and resources: Offer training sessions or workshops that educate employees on HR policies and their implementation. Provide resources like FAQs, guides, or templates to support employees in understanding and following the policies. 8. Maintain consistency: Ensure that HR policies are consistent across all levels and departments of the organization to ensure fairness among employees. 9. Simplify approval processes: Keep the approval process of HR policies simple to avoid excessive bureaucracy and delays. 10. Regularly evaluate and adjust: Monitor the effectiveness of HR policies and make adjustments as needed to continuously improve policies and their implementation.

𝗔𝗱𝗱𝗿𝗲𝘀𝘀𝗶𝗻𝗴 𝘁𝗵𝗲 𝗦𝗸𝗶𝗹𝗹𝘀 𝗚𝗮𝗽 𝗶𝗻 𝗬𝗼𝘂𝗿 𝗢𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 🚀 Feeling the pinch of a skills gap in your team? You’re not alone. Many organizations today are grappling with a widening skills gap that threatens their competitiveness and operational efficiency. 📌 Ignoring this critical issue can have severe repercussions, including operational inefficiencies, missed opportunities, and a loss of market share. The time to act is now! Here’s a comprehensive plan to bridge the skills gap and future-proof your organization: 🎯 Conduct Regular Skills Assessments: The first step to addressing the skills gap is understanding where it exists. Regular skills assessments help you identify the specific areas where your team is lacking. Use a combination of performance reviews, employee surveys, and competency evaluations to get a clear picture. 🎯 Implement Targeted Training Programs: Once you've identified the gaps, the next step is to implement targeted training programs. These should focus on both hard and soft skills, encompassing everything from technical abilities to leadership and communication skills. Tailor the training to meet the unique needs of different departments and roles within your organization. 🎯 Leverage E-Learning Platforms: Utilize online learning platforms to make training accessible and flexible. E-learning allows employees to learn at their own pace and on their own schedule, making it easier to fit training into busy workflows. Incorporate interactive elements like quizzes and simulations to enhance engagement. 🎯 Promote Continuous Learning: Foster a culture of continuous learning where employees are encouraged to develop their skills on an ongoing basis. Offer access to resources such as webinars, online courses, and workshops. Encourage employees to take ownership of their professional development by setting personal learning goals. 🎯 Use Mentorship and Coaching: Pair less experienced employees with seasoned mentors who can provide guidance, support, and valuable insights. Coaching programs can also help employees develop specific skills and competencies more quickly. 🎯 Monitor Progress and Adjust: Continuously monitor the effectiveness of your training programs and make adjustments as needed. Use metrics such as employee performance, feedback, and completion rates to assess the impact of your initiatives. Be agile and willing to pivot your strategy based on what the data tells you. Taking these steps will not only help you bridge the skills gap but also contribute to a more engaged, competent, and competitive workforce. Addressing the skills gap proactively will ensure your organization stays ahead of the curve and is well-positioned to seize new opportunities. Got any other tips on how to effectively address the skills gap? Share your thoughts and strategies in the COMMENTS below! ⬇️ #innovation #humanresources #onboarding #trainings #projectmanagement #skillsdevelopment