Over the last few posts, we’ve looked at how and why now is an excellent time to hire talent and grow your start-up. But the story doesn’t end when you’ve hired your talent; the next challenge is retaining and rewarding them. In today’s tumultuous economy, talented employees may be less willing to take risks, but when the economy starts growing again, the willingness to take risks for greater rewards will return. A system which enables you to reward talent is going to stand you in good stead for retaining them – happy employees will rarely leave.
Figuring out what really motivates your team is key to this. Understanding the type of leadership they require is part of the jigsaw puzzle. There are hundreds and hundreds of successful rewards schemes across businesses around the world. Below are five that I have found tend to work, and one that I’ve found doesn’t.
Build a True Meritocracy
Constructing a transparent and definable career structure within your company, so that those who come in on a junior level know what milestones they need to hit to achieve promotions, gives everyone the benefit of seeing a clear future path for themselves within a company.
Fun short-term incentives
By working in fun, short-term incentives you can reward people quickly for excellent work, rather than having them wait for a review period. It’s easier to conceptualise for many employees rather than distant, long-term goals. When you aim these incentives towards a long-term goal then you have a recipe for success.
EMI shares AND revenue shares
Some people love the idea of owning a small fraction of the company they work for, giving them a greater sense of control and purpose in proceedings. Others are more focused on the immediate monetary gain, which is fine too. If you’re able to offer both, why not? Either way, you’ll have employees invested in your business.
Corporate Social Responsibility
Giving people paid time off (that isn’t part of their regular holiday package) to take part in charitable causes close to them can be hugely beneficial. Research shows that few things make human beings as happy as being able to help others. Giving people the chance to do exactly that will not only make your employees happy, but will boost their productivity in the long-term too. Most importantly, you’ll be helping make the world a little bit better, one step at a time.
All talented people want to grow and gain expertise. Part of that involves training. No industry is a closed circle – every sector is changing all the time, and having employees take part in training that keeps their skills up in the top tier will make them happy and they will then be able to take those newly-honed skills back to you, giving you a boost in growth.
What not to do: Annual schemes
This may sound like a strange one, but in my experience, annual schemes rarely work. Basing bonuses yearly means that performances often get boosted only in the three-month period leading up to review. You want your teams delivering every month, every week, every day. That’s why short-term incentives can sometimes play a greater role in boosting morale.
Want some more advice on how to accelerate the revenue, profit and shareholder value at your company in addition to retaining and rewarding your employees? Contact me today, I offer a free taster session – get in touch to book a time!