How to Avoid the Problems in the Future

It is important for management to be in touch with what goes on from day to day. Encourage an open door policy and be open to hearing complaints and suggestions.

Several successful studios have used some of the following benefits to create a work environment in which the employees feel welcomed and appreciated. You should consider trying some of these or your own creative ideas.

• Good benefits (full medical, dental, paternity leave). Start with the basics and add benefits as your company grows.

• Flexible working hours. The game industry thrives on its wealth of creative geniuses. Not everyone has his or her creative juices flowing by 9 a.m. Countless studies on business psychology have shown that flexible work schedules improve productivity, increase retention, and reduce absenteeism and tardiness.

• Up-to-date, functional hardware. Employees quickly grow frustrated when dealing with equipment that is inadequate for the task assigned.

• Downtime to play competitor's games. There is no greater bonding experience than tearing apart the competition's product.

• Free sodas and snacks. These can be purchased very inexpensively by the case at wholesale clubs.

• Dinner provided during crunch time. The team appreciates the free meal and less downtime is taken by having dinner at the office.

• Working with others who are passionate about the project. The quickest way to sabotage a project and ultimately a company is to hire a bunch of burned-out, indifferent sourpusses. Game development has enough obstacles; you don't need any on your payroll.

• Health club membership. Not only does it keep you fit, exercise is a known mood elevator. Mentally and physically healthy employees result in less absenteeism and increased alertness.

• Ice Cream Day to celebrate monthly birthdays. Or cake or whatever. It's the thought that counts.

• Monthly pizza for lunch. An inexpensive gesture that is greatly appreciated by a hungry team of developers.

• Creative and appealing work environment. This doesn't mean designer copper-topped conference tables. Paint is cheap. Appealing colors inspire creativity, increase productivity, and relieve stress.

• Launch/ship parties. A development studio in Austin does Mexican food and margaritas. They rent a margarita machine and order loads of the spicy cuisine. Reward the group for a job well done. It's much cheaper than replacing them for the next project.