Rocky Romanella – CEO, 3Sixty Management Services.
According to the Bureau of Labor Statistics, 50.6 million people quit their job in 2022. The best leaders understand how to attract and retain top talent by creating an atmosphere that assures their employees are not among this statistic. They focus on the partnership between the organization and the employee.
Often partnership is thought of as an equity stake. However, a new way to think of partnership is an incentive-based tiered reward system for employees that benefits their long-term goals and needs. This involves creating incentives built around what matters to employees and determining ways to help them meet those goals in a way that is mutually beneficial to the employee and employer.
Here are five non-traditional incentives to retain high-performing employees and drive down turnover rate.
1. Tuition Reimbursement
For individuals who are currently in school or would like to continue their education path, this is an excellent choice. For example, you can offer employees a certain amount of money per year to finish a graduate program.
For those who are finished with their education and are saddled with student debt, a partnership program that rewards them with student debt payments may be more appealing.
2. Equity Stake
Consider offering an equity stake plan that has a one-time option to convert the payout to cash in a year based on a particular need.
3. Retirement Plan
Instead of a traditional equity stake in the company, offer a higher percentage into an employee’s retirement plan. For example, if the company match is 3%, the partnership plan can offer up to 10% based on target goals and levels of responsibility.
4. Additional Or Unlimited PTO
Well-being and work-life balance are often spoken of in business. PTO is mentioned as an incentive for employees but rarely practiced in action. Therefore, an actual goal-orientated structure where PTO is used as a reward can be a powerful incentive to work hard and hit goals.
5. Bonus
These are often only thought of as something pertinent to certain industries. However, a bonus structure for hitting goals is suitable to almost any organization and its employees.
These are some ideas that you can discuss with your people who are now committed to the long-term success of the organization and focused on new ways to create solutions as partners.
It’s important to remember that partnerships and incentives are not a one-size-fits-all approach. Each plan can be tailored to the person, their level of responsibility and goals.
Conclusion
As leaders, it’s our job to be fair, flexible and adapt to changing conditions. The traditional concept of stock, equity and partnership was a way for managers to share in the prosperity of the business. It had a long-term view of compensation that may no longer appeal to employees or serve their needs.
True leaders are deeply committed to supporting success for all. This starts with understanding the needs of their team and determining what in today’s climate will make them feel more like partners. By doing so, leaders check their egos at the door and strive to be respected among their peers and within the industry. The ultimate goal of these programs should be that people are working toward their personal and professional goals in concert with the goals of the organization.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here
