Reward and incentivisation to drive long-term growth

For every business it is vitally important to retain and motivate key employees to drive future growth. It is important to understand a business’ culture and goals with help to devise a suitable long-term strategy.

Joe Grimes looks at areas to consider, including:

Salary and bonus

The most simple way to incentivise staff is with salary. Bonus plans can also be devised to reward individuals and can be drawn up to link reward to personal and/or business performance.

Benefits

An employer can offer an employee a wide range of benefits including medical insurance, vouchers, cars or fuels. The tax implications for both the employer and employee should be carefully considered.

Pensions

Employers are required by law to offer a pension scheme to their employees under ‘auto enrolment’. Pension plans can be flexibly drawn up to encourage employees to contribute alongside the employer and reward those who do.

Share Incentives

For key individuals a business may want to incentivise them to drive long-term growth. There are various methods that can allow an employee to receive shares or options to receive shares based on future performance. Share options do not have an immediate cashflow impact on the business so can be popular with growing businesses. Should an employee meet all of the qualifying criteria then they would be entitled to some of the proceeds of any sale of the business. Provisions can be built in to ensure that an employee who exits the business will sacrifice their shares or share options.

Our experts can help understand the business’ goals and work with management to implement a successfully reward strategy.