Incentive Plans – My Business August (2012)
The key to any incentive plan is that it must be self-funding, otherwise you have simply created an entitlement for employees. Secondly the plan needs to be tied to only one measure i.e. Profit Before Tax, and should be broad based. Employee Ownership Share Plans, otherwise known as Employee Share Schemes, are becoming an increasingly more popular way to improve employee engagement, retain key staff and can even be used to sell your own business to your employees. When used in conjunction with Ownership Thinking; another employee engagement strategy, the performance of any business can be dramatically improved.