In year one, each department is getting an executive and a mid-level FTE. However, R&D department get one junior FTE employee as most of the activities came from R&D department. With two employees for the two support departments (G&A and S&M) it will give adequate resources to strategically position the company for large expansion the following year. The compensations for the executives are relatively low compare to market condition therefore, stock options will be used.
With the established pay band from year one a pay increase of 8 to 16 percent across the board to bring up the pay band closer to market average to attract talents. In year 2, R&D added two more mid-level FTE to perfecting the product to increase the chance gaining FDA approval of the product. S&M department increased one senior-level, five mid-level and four junior-level FTEs. Those include one senior, two mid-level and three junior marketing FTEs to introduce the product to different markets. Six sale FTEs (one senior, four mid-level and and one junior-level) to handle sales and searching for new customers. G&A department added two FTEs (one mid-level and one junior –level) to accommodate the personnel and office space growth.
Revenue from year 2 prompted an aggressive increase in personnel budgeting in order to introduce the product to different markets. In year three, senior level received the highest pay raise with 12-13 percent. As fast as the company’s growth, the compensation for G&A employees must grow to keep up and attract talent. Mid and junior level G&A employees saw a 15 percent increase in pay band while S&M and R&D saw a modest 5-7 percent increase as these two job classifications are within market average. For this year, a CFO, two mid-level and one junior-level FTEs were added to handle the positive revenue and strategically position the company to boost its profit. R&D department added on mid-level and one junior-level FTEs to handle the product modifications in this introductory period. S&M see the largest expansion with the addition of another VP of sales for western region, four mid-level and two junior-level FTEs to handle more production introductions and sales.
The net profit from year 3 pushed the company to an aggressive expansion with an addition of a COO, one mid-level and one junior-level FTE to the G&A department. R&D saw an addition of one engineering VP and one mid-level FTEs. S&M aggressively added five more mid-level and two junior-level FTEs to increase marketing and sales growth in the western region. With the profits from year 3, employees receive a pay raise of 10-13 percent across the board to retain talents and attract new talents.
As market for the product grew it showed the stability of the product therefore in year 5 R&D added just one mid-level employee to handle engineering and defects. S&M added four FTEs (three mid-level and one junior-level) to increase sales. G&A added two mid-level and one junior-level FTEs to handle company finance, expansion and strategic planning execution. Across the board pay band for each job classification became more competitive to market averages and employees contributions to company growths. As always, R&D engineering with the highest pay band for mid-level and junior-level.