According to the survey, 54.4% of respondents reported they have an incentive plan for their key employees and take measures to assure their key employees feel different because they are participants in such a plan. Of those with incentive plans, 87.5% share additional company info with their key employees and 50% of the same number conduct special meetings to disseminate material among employees. While the survey shows a positive upswing towards incentive planning, a troubling fact is close to 50% of respondents do not have an incentive plan for their key employees.
It is imperative to note, respondents with Key Employee Incentive Plans have seen their business improve—margins are up, more positive participation, ownership of responsibilities, better quality and improved customer satisfaction.
Communication and interesting planning techniques associated with Key Employee Incentive Planning, focusing on phantom equity techniques, straight incentive compensation based on profit, as well as additional “non-technical”
Responding to the lack of Key Employee Incentive Plans and the need for Business Owners to begin to identify the need for creating a business plan with a successful exit plan component, Bob O’Hara (CPA/PFS, CExP™ owner of O’Hara & Company, PC in Chelmsford, MA) and ExitPlanning-
According to O’Hara, “Key employee engagement and successful Exit Planning creation, in conjunction with one another, proves to build strong and sustainable businesses.”
About Bob O’Hara and ExitPlanning-