Wright Hassall law firm urges companies to share incentives
Added: (Tue Nov 11 2008)
Pressbox (Press Release) -
Businesses frightened of losing staff because they cannot afford to give pay rises or bonuses have been urged to offer share incentives instead.
John Dormer, partner at law firm Wright Hassall, says companies should consider creating share incentive schemes in order to retain their key employees and increase their motivation during the financial crisis.
The Financial Services Authority and the Treasury have both said that long-term incentives for staff are more likely to give firms prolonged stability and will help businesses to stay strong during the credit crunch.
“In the current climate where money is tight, it is difficult to keep staff morale high through traditional ways of salary increases and bonuses,” he said.
“Share incentives offer companies the opportunity to reward their employees for meeting longer term business goals and also offer them a potential stake in the businesses they work for.
“There are also tax breaks available for professionally constructed incentive schemes so there are savings to be made financially, along with the improvement in employer-employee relations.”
John, who is the employee incentive specialist at the Leamington-based practice, has also warned that doing nothing could put already vulnerable businesses in jeopardy of losing the very people who can help them through these times.
“Most businesses are enduring a period of instability because of the markets, so the last problem they want is staff leaving.
“It’s not just a problem because of the hassle and cost of recruiting, it’s the training any new starter will need in order to perform properly.
“That is why an incentive scheme is invaluable at present because it secures and motivates key staff for the long-term and will ultimately help businesses to recover when the financial crisis is over.”
For more information about employee incentive schemes, John is contactable on 01926 884626.
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