Now that Millennials and Gen Z make up most of the workforce, their influence has caused a seismic change in what employers must now offer to keep good talent.
In the past, a 40-hour work week with healthcare benefits and some time off was just about all an employee received from their employer, particularly if that employer happened to be a privately owned business.
But the younger generations want more. In addition to standard benefits, Millennials and Gen Z want a better work-life balance and their hard work acknowledged by the boss.
In the past, it was more difficult for small business owners to offer incentives like profit sharing or stock options because of budget constraints or simply because their company was too small to be traded on Wall Street.
But with innovative new equity-based offerings on the market, even small businesses can now reward their best employees with a true stake in their future.
Share the Wealth
Research shows that strong benefits packages are fundamental to employee retention rates. Comprehensive compensation packages that include good pay, healthcare and additional perks like retirement plans and stock options show employees they are valued.
In larger corporations, particularly those that are publicly traded, employers can offer stock options and profit-sharing packages to key employees. These packages help reward and protect talented employees by allowing them to save for retirement or provide them with a pay-out if the business is sold.
But most small businesses do not have the scale orenterprise structure necessary to offer such incentives.
Customizing a Plan
With a company like Reins, however, small businesses nowhave solutions to help them retain their top employees.
With a solution like phantom stock, for example, an employee can be rewarded with a future cash payment based on the company’s value. Or, small business can provide their key talentwith a specialized profit-sharing plan that provides for short-term cashdistributions.
Rein’s Modern Agreement for Rewards and Equity (MARE) solutions can be tailored to meet the needs of your small business, allowing you to offer incentives to the right workers for the right price.
And, because small businesses often have more diverse financial sources than larger corporations that rely on standardized financial markets, they need customizable plans based on their size, revenue and number of employees.
Pulling the Reins
That’s where a company like Reins comes in.
Our MARE phantom stock program’s flexibility is structuredbased on your preferences and is allocated based on your company’s:
· Legal type: LLC, S-Corp or C-Corp.
· Award type: Full-value orappreciation-only stock awards
· Triggering event: Sale of the business, annual vesting event, termination or a specific future date
· Phantom equity pool: The total amount ofyour company set aside for employees
· Phantom equity percentage allocation: Based on the percentage of phantom stock allocated per employee
· Vesting schedules: A period of time duringwhich an employee gains ownership of the allocation
Our team can also build profit-sharing plans with the MARE framework based on the formula, frequency and profit pool you designate.
MARE simplifies the traditional legal documents, time spent, affordability and flexibility that your small business needs in order to retain your best talent.
To learn how we can help your small business retain your key employees, attract new talent and identify the right plan for your small business, call Reins at (725) 237-5396 or book a call with us today!
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