The potential to get in on the ground floor of an exciting new tech company is often incentive enough for startup enthusiasts to join in the early stages.
But “potential” isn’t always going to be enough to bring in all the team members you need to grow.
That’s where a strong employee incentive program comes into play, says Candace Jackson, partner of Moore Colson CPAs and Advisors in Atlanta, where she leads the firm’s employee benefits and audit practices area.
Paid time off and retirement plans are pretty standard. But they can be costly to implement effectively, said Jackson. So offering unique and curated benefits can be an important way to retain employees and increase employee morale while signaling to recruits that your company is a long-term option.
The rise of “stay bonuses” and subsidies
Bonuses — whether based on the individual or team performance — are most common. And for those in finance, legal, or top corporate executive roles, they are an important part of an overall compensation plan. But “stay bonuses” that grow the longer an employee stays at a company are becoming more popular in industries seeing high turnover rates, said Jackson.
Beyond cash bonuses, subsidies are also an important way to grow an incentive program. Jackson said she’s seen companies subsidize child care, pet insurance, gym memberships, along with at-home food delivery services.
These types of subsidies can show that a company “recognizes that people are busy” and stressed when they get home from a day at the office.
There are also ways to make incentives more fun. Within her own team, Jackson started implementing Bingo Fridays, where winners walk away with gift cards, and set up “Flexible Fridays” to give employees more empowerment over their schedules.
Making Incentives Count
For startups looking to revamp or scale up their employee incentive programs, Jackson said that it is important to remember that there is no “one size fits all” solution. And often, bigger doesn’t mean better.
It is far more important for companies to “align incentives with what’s important to your workforce,” Jackson added.
Would employees want maternity or paternity leave? Or do they need help paying for higher education? That can change based on age, number of family members, or long-term goals. And knowing what employees really want can assure that companies aren’t spending too much on benefits that aren’t actually going to be used or appreciated by their employees.
