Business owners must ensure they are doing their bit to retain top talent, as well attract new potential employees in such a competitive employment market. Different methods of incentivising can lead to more motivated and happier staff, who provide better work output to create high customer satisfaction. Methods to incentivise can include:
Share-option schemes involve awarding your employees equity with favourable tax terms. Employees who have a personal stake in the company are likely to feel more invested in the success of the company, creating a sense of loyalty as well as increased engagement.
There are different options to choose from, and those who choose to participate in such schemes can use this to build wealth over time and become closer to achieving their long-term financial goals.
Alternatively, there is the option of a bonus. This is any additional payments on-top of a regular salary as a reward for staff who meet or exceed specific performance goals, and allows for increased job satisfaction. Bonuses are immediate forms of gratification, which is often preferred by employees, rather than going down the long-winded route of shares and equity based incentives.
We also develop bonus schemes with clients that are linked to long term performance of the business, with the schemes paying out periodically. These are particularly popular for owner-managed businesses, where the owners do not wish for any non-family shareholders to be involved, with the bonus scheme enabling key employees to be rewarded for creating shareholder value.
There are benefits to rewarding through bonus over salary increases due to the flexibility. They can be given at any time. They also help maintain cost levels as they are not permanent and can be based on both business and personal performance.
Granting employees access to high level training courses and workshops will encourage them to develop new skills, which they can put to use at work, as well as to advance further in their own careers.
Having the ability to expand on their own knowledge will ensure that they feel invested in, and supported by the company.
In a post-Covid world, flexible working has become invaluable to modern employees. Where possible, employees’ needs should be accommodated, whether that’s done by allowing a hybrid working system or managing time off. A positive impact on an
employee’s work life balance can lead to increased happiness and motivation, making it easier for business owners to retain their employees.
Regular social events can build stronger relationships outside of a work setting, which will inevitably lead to better communication and understanding between colleagues. This will reduce the chances of unhappiness at work – making it a much more positive environment.
Reinforcing your company values often, and ensuring that they are understood by every member of the team is vital. This includes knowing what they are and how you work towards them. This creates groups of like-minded individuals, who work well together and have a clear purpose at work.
If you want to discuss your people strategy, get in touch.
T: 020 8549 5137