Incentive schemes which help boost loyalty, productivity and motivation are now being increasingly implemented by companies across the UK.
A recent EEF skills report has confirmed that the UK manufacturing sector is in the midst of a staffing crisis which has seen over 35% of vacant industry roles now considered ‘hard to fill’. Employers have reported that almost 70% of recruits lack the technical skills required and this is the main driver behind their recruitment difficulties.
As the pace of technological change within the sector increases, and with the flow of graduates with STEM training in short supply, talented employees are a valuable commodity.
In order to promote business growth and retain a competitive edge, staff retention must be a priority for businesses.
Selecting a remuneration package that promotes staff motivation, loyalty and productivity is essential. Here are some of the key factors in creating a successful remuneration package.
Share incentive schemes
One such way to promote long-term staff retention is through the introduction of share incentive schemes, such as the EMI (Enterprise Management Incentive) share option scheme.
This initiative allows businesses to reward staff in a tax efficient manner, by allowing them to purchase shares in the company at some point in the future.
Executive bonus schemes
Many companies look to share the financial success of the business with key employees on an annual or quarterly basis, many of whom are likely to hold knowledge and experience that is essential to the firm’s ongoing success.
In order to implement a bonus scheme effectively, clear and objective KPIs must be agreed upon and the associated rewards clearly communicated with staff.
Often the simplest employee benefits are the most sought after. Aside from the usual cycle to work schemes and childcare vouchers, offering staff flexible working patterns can prove to be a huge carrot and significantly increase length of service, especially for those with families.
These types of benefits may be extremely difficult or awkward to negotiate elsewhere and are a great tool in promoting loyalty.
Employee ownership schemes
To retain key members of the leadership team and to cement their commitment to growing the business before its eventual sale, it may be possible to agree upon a management buy-out (MBO) or the adoption of an employee ownership model once the business owner is ready to leave.
This will act to encourage employees to engage with the long-term goals of the organisation and protect the business’ working culture.
To read more on how to motivate staff in the workplace visit The Manufacturer website.