Creating Incentives for Key Employees
Keeping the best talent on your team means building a vision for their career at your company.
If you have ever lost someone talented, or are worried about losing someone right now, this article is for you.
The best part about working with talented, motivated people is that they are the ones that drive your company forward. They create the value that you deliver to your clients and customers. They are the ones responsible for driving the business equity growth.
The worst part about working with those same people are all of the same things because if they leave, you feel the loss. They are the ones that want to see their career path and growth opportunities laid out clearly with objectives to meet along the way. They also want to see what their future compensation will look like and possibly a path to ownership access.
So, what tools are available to set a clear career path that incentivizes them to stay and grow your company? Here are four options:
1. Career Paths
Have defined paths that show how an employee can move from where they are today to different roles or levels of responsibility in the future. Having the key areas of responsibility for each position paired with an outline is a great start.
2. Company Growth Plan
Growth creates opportunity. Having a vision for how you want your company to grow allows you to communicate that there will be jobs on the org chart that don’t exist today but will in the future.
3. Incentive Compensation
Pairing the incentive compensation with the individual growth objectives and company growth objectives incentivizes the behavior that these high-achievers are already showing. You can use cash bonuses, phantom stock, stock options, and other types of executive benefit plans. They also make great retention tools.
4. Path to Ownership
If you are seeking an internal succession plan, or want to bring on minority equity partners, articulate what the requirements are to become a partner and the specific milestones to achieve. Equity should always be purchased and never gifted, as a gift immediately diminishes the value.
Take the time to help build a career vision for your key employees. It is key to driving the growth and long-term value of your company.
Have any questions? We’re here to help!
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