Is employee retention a problem that is affecting your business? Considering implementing employee incentives or performance-based rewards in order to keep staff turnover to a minimum? Multiple profit and share schemes are available, but fds’ preferred option, which has continuously proven to be effective, is the long-term incentive plan (LTIP).
The LTIP scheme allows you to set up a plan that does not dilute your ownership in the business, yet still allows the loyal and worthy staff to participate in its growth in value at a certain trigger point, either an actual sale or a specified date. The long-term incentive plan therefore promotes employee retention by encouraging the key employees to stay in their role for a future payout.
In the video below, Jo Haigh, Founder and Chairman of fds, shares an overview of the benefits of LTIPs for employee retention.
How to attract and manage key staff is a problem affecting businesses globally. An important consideration is that different generations require distinct employee retention strategies, as generational differences generally shape an individual’s values in the workplace and with an employer.
Employers should consider implementing schemes to retain key talent. This could be a long-term incentive plan, growth scheme, or EMI scheme.
Key points to remember include:
- Make sure you know what your staff want and value.
- Ensure the correct products and procedures are put in place, rather than what you think will work.
- Clear communication- ensure your team understands how the schemes work, what the benefits are, and how they can participate.
Interested in Fostering Employee Retention?
fds has experience in implementing LTIP schemes that benefit the employees and the business. We are ready to take your business to the next level by driving employee retention and boosting motivation.
If you want to learn more about incentive schemes, please do get in touch for a confidential discussion.