Abstract
This paper investigates different rewards strategies for new ventures and their respective impact on employee outcomes and firm performance. Based on a total rewards perspective that includes monetary as well as non-monetary rewards, we develop a framework that explains how the composition and effectiveness of both rewards elements change over the life cycle of a new venture. Our paper suggests that as new ventures grow and overcome their liabilities of newness and smallness, they gradually shift their emphasis from non-monetary rewards to monetary rewards elements and from incentive compensation to fixed pay.