Pay matters, says Sunitha Ramaiah, owner of Bombay Talkie, a sleek New York City restaurant that serves contemporary Indian food. Now in its third year, Bombay Talkie has retained about 85 percent of its original two-dozen employees. Ramaiah credits the low turnover to the performance-based bonuses she instituted from the beginning. The idea was something she brought with her from her last job. Although Ramaiah loved to cook and always wanted to own a restaurant, she heeded her family’s ...

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