Small businesses are beset with choices and sometimes problems on all sides. A third of them go under after a year, and most of the others aren’t profitable until after a few years of operation. When a small, specialized firm, let’s say an app developer, starts up, it usually only includes a few employees, and employee compensation is put on the backburner. The few working for the firm aren’t as concerned with their benefits package or yearly salary, so long as the organization they helped create with their colleagues survives.

But as the organization grows, its leaders face ever more challenging decisions. As they get more clients demanding more products and services, they need a larger workforce to handle the new business. Put yourself in this position. You’re the leader of an app development company. You need a few new coders to produce apps for your clients faster and to handle the new influx of work. Do you hire a few short-term contract workers to handle the next project, or try to find employees who can commit to your company, grow within it, contribute to its growth—and demand a higher compensation package?

Compensation in the Short Term Versus the Long Term

In the long run, companies that pay their employees more have greater success, according to a survey published on Forbes.com last year. But it’s not that simple when you’re trying to get your company off the ground. There are times when you need workers but you can’t offer them full benefits or a salary beyond the industry or area average.

The short-term answer is to be open with your new employees. Applicants to new companies that may be struggling know what they’re in for. They aren’t expecting the huge compensation packages they would get from an industry giant like Microsoft or Amazon, and that’s okay. Your fledgling firm may not get the ultra-qualified applicants that your huge competitors get, but, if you market your firm and its employee compensation packages right, you’ll get qualified candidates willing to grow and learn with your company.

Employee Communication is About Expectations

Honesty is everything. A small business finding the right talent sets up its employee communication strategy as it goes. If that strategy and system is built on honesty and trust, employees will respond and new-hires who know the score will accept a lower compensation package if they also know they have opportunities to advance in the company.

If you follow through on your promises to your employees, they will respond with higher quality work and a willingness to learn and grow within your organization. Reward loyalty and remain open with your employees, and your little firm will grow.