All good things must come to an end. That’s how the co-founders of San Francisco-based software company Lattice, Jack Altman and Eric Koslow, view employee retention.
“I always tell all the new hires on literally day two of their onboarding, ‘There will come a day that you will want an opportunity that Lattice can no longer provide, and that is OK,'” Koslow tells Inc.
Altman, 32, who is currently CEO, says the typical tech company keeps employees for about two years. Lattice’s voluntary attrition rate has held steady in the single digits—currently at 3%—throughout the Great Resignation. But even with a high retention rate, people still have to be replaced, especially as Lattice scales, so it has begun offering one perk that stands out to Inc.: seed money.
If you’re trying to attract talent, paying a current employee $100,000 to quit and start their own business might seem counterproductive. But that’s the objective of the Invest in Your People Fund, which Koslow and Altman launched in February 2020. It offers a $100,000 investment to any employee who leaves Lattice and starts a company within one year. The terms? Lattice retains a 2% equity stake in these businesses—though the stake is less if the startup attracts a valuation of more than $5 million.
Future returns on these investments aside, the co-founders say the fund has already started to serve a legitimate business purpose.
“We’ve had a lot of people join us because they heard about this program,” Koslow says. “They’re like, ‘I want to work for a business that treats employees this way.'” Read the full story from Inc.
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