Managing talent: keeping employees engaged
Let’s start at the beginning. You want a profitable business that is a good place to work. Part of the way to achieve that is to ensure you and your other talented colleagues work together to make a successful team. So, what do you need to do to keep the team happy, motivated, engaged and productive?
A recent, extensive, survey by Towers Watson concluded that the top drivers of employee attraction and retention were the obvious — pay, security and career advancement. Maybe you could have worked that out yourself though it is useful to have it confirmed.
Looking at your business and your people, how can you achieve this? I am going to suggest an employee share incentive. As this is the speciality of The RM2 Partnership Limited you will not be surprised but look how it ticks the boxes:
- Pay: you can offer profits by way of capital growth or dividends through shares and often those can be through a statutory tax advantaged plan giving tax and national insurance contribution relief for both the employee and the company. That means, particularly for companies going through high investment periods or when cash is tight, pay can be supplemented with share entitlements.
- Security: all employees worry if they are going to have a job for the longer term. Companies need to be flexible but what better way to show someone you value them and their work than to offer them the chance to be a shareholder, to have an interest in the equity of the business. Of course the grant of a share option or similar does not guarantee job security, that is never really possible but this does give the message that you want someone to stay with the company for the longer term.
- Career advancement: so many companies, especially smaller companies, have removed layers of hierarchy. This is sensible for all sorts of reasons but makes it difficult for individual employees to identify career progression. Where the levels are ‘junior’, ‘manager’ and ‘director’, it can be tough to motivate the band in the middle. The suggestion here is that, whilst they might not be ready yet to be a ‘senior’ or ‘director’, perhaps you can promote them by giving them entitlement to the share scheme. An employee share scheme is a flexible tool for rewarding, retaining and motivating your team. At The RM2 Partnership Limited we see a wide range of companies and sectors and help companies to implement plans that manage the talent within companies. We could help you too.
 The Towers Watson Global Talent Management and Rewards Study fielded from April to June 2014 in 31 markets around the world and included responses from 1,637 participating organizations. The participants represented a wide range of industries and geographic regions. The Towers Watson Global Workforce Study covers more than 32,000 employees selected from research panels that represent the populations of full-time employees working in large and midsize organizations across a range of industries in 26 markets around the world. It was fielded online during April and May 2014.