On Thursday May 12th, the Kansas City Construction Practice kicked off their summer breakfast event series with a discussion focused on Key Employee Incentive and Retention Plans – Creating a Motivated Management Team.
Key employees can be hard to find and even harder to keep. High-caliber employees drive the generation of profit and enterprise value, and can be a vital piece in a successful ownership transition. As a business owner, identifying these employees, understanding what motivates them to remain loyal, and encouraging them to stay the course, is critical to your company’s future, your financial independence and your personal legacy.
While higher pay seems like the best answer, it doesn’t stop competitors from offering even higher pay or better opportunities, it doesn’t encourage the leadership mentality and it doesn’t invoke loyalty – in many cases an incentive or retention plan may be the best solution. It is important to first understand what motivates your high-caliber employees and then design an effective plan that will benefit both the employer and employee. During our discussion today, Joyce Farris outlined a variety of different plan options and decisions to weigh as you go down this path. To summarize, no matter what type of plan you institute, the plan should:
- Motivate key employees to attains goals and as they do, the company value should increase;
- “Handcuff” the key employee to the company;
- Outline meaningful and realistic objectives that are well-communicated;
- Provide substantial benefits and should be a win for both the employer and employee; and
- Provide specific guidelines on how to achieve the benefit (s).
To receive a copy of today’s presentation, for questions on this topic or for additional information, please contact Joyce Farris at 816.945.5121 or firstname.lastname@example.org
Save the Date for Part II in the Construction Breakfast Series: Employee Stock option Plans (ESOPs) in the Construction Industry, July 12th.