How to Retain Employees in an Organization
One of the most valuable assets of any organization is its employees. However, as an employer, you may be asking yourself, “how do I retain key employees?” The hiring market is very competitive today, so attracting, motivating, and retaining key employees who drive the organization’s success can be difficult. We’ll break down how to retain employees in an organization effectively through retention and succession programs.
Retention and Succession Programs
Our experience at Triscend NP shows a correlation exists between employee retention and organizations with formalized retention and succession programs. When you have a formalized plan, it is easier to retain talented employees who will have more pride and passion for your organization. For example, think of a scenario where a CEO had a short runway until retirement and three members were flagged as possible replacements for the CEO. Two of these members are young and unlikely to assume the CEO position at this time. To help retain these two younger employees, the organization sought to pre-emptively implement a Supplemental Executive Benefit that would provide high-retention value for these two young executives. This plan provided the executives with significant improvement to the executives’ retirement benefits which were controlled by a customized vesting schedule. This schedule also awarded them an immediate vesting percentage in recognition of prior years of service, while encouraging continued service by vesting the executive annually.
Non-Profit and Small to Medium-Sized Businesses:
If you are a non-profit or a small to medium-sized business wondering how to retain employees in an organization, Supplemental Executive Benefits are an effective way to retain key talent. These benefits go beyond traditional qualified plans. Non-profit and small to medium-sized businesses do not have the same luxury as for-profit, publicly traded organizations. These smaller and non-profit companies are limited in the benefits they can offer. In these organizations, we most commonly see the implementation of Deferred Compensation, §162 Executive Bonus, or Split-Dollar arrangements.
With the right planning and consideration, it is easy to answer the question, “how to retain employees in an organization?” TriscendNP will provide you with proper support and qualified industry experts so executive retention and succession planning is no longer a daunting task. Contact us today to learn how you can start retaining your talented employees.