CaseAnalysis: VIVID Ski Employees Wave 3
InTim’s case with the SkyBox, the first wave of employees was likevolunteers who not only dedicated their time but also their money inthe business. The passion they had on helping Tim build the SkyBoxgave them the motivation to move on and build it wihout need for anycompensation. However, this type of motivation was not enough sincethese employees were getting nothing in return. From this notion, itis important to appreciate the impact of compensation of employeesfor the hard work they do for the company (Katz,& Green, 2011).the second wave of employees who were more skilled could not continuewith the job since Tim gave them little pay which could not hold themto work. Most employees require value for their hard work. Better paymakes the employees feel more obliged to carry on with the work. Themain reason why these second employees could not stay was becausethey had better jobs which paid them well and the opportunity costfor working for Tim was quite high. The third wave of employees couldnot keep up with the market demand because of lack of properexpertise required by the market participants in this industry. Thefact that they could not keep up with the numerous request that Timgot from various interested parties make these employees quiteincompetent for the job (Katz,& Green, 2011).
Onthe account of recruitment, Tim should ensure that he recruits morequalified and competent employees for the SkyBox since it is at itscritical stage. One way in which Tim should compensate these newlyrecruited employees is through equity pay. This mode of payment hasan advantage that Tim would now not use money but will get fullsupport from these employees (Bridge,& O`Neill 2012).Additionally, the level of commitment would increase since they willform part of the ownership of the company. One disadvantage for thismode of payment is that Tim will no longer be the sole owner of theenterprise hence there will be a division of control among thepartners. This move could create agency problem within the firm. Thefirst lesson I can get from this case is that one can start abusiness with any minimal capital as long as one they have a commongoal. High rate of employee turnover derails the process of growing abusiness and lastly, Equity payment is the best method when thecapital is limited for the start of the business (Harris,Gibson, & Taylor, 2015).
Bridge,S., & O`Neill, K. (2012). Understandingenterprise: entrepreneurship and small business.Palgrave Macmillan.
Harris,M. L., Gibson, S. G., & Taylor, S. R. (2015). Examining theimpact of small business institute participation on entrepreneurialattitudes. Journalof Small Business Strategy,18(2),57-76.
Katz,J. A., & Green, R. P. (2011). Entrepreneurialsmall business(Vol. 200). McGraw-Hill/Irwin.