Call for employers to incentivise staff

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

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Business owners are being advised to look at ways of incentivising key employees following the publication of new figures suggesting that employers could face a high staff turnover in 2014.

According to research from the Institute of Leadership and Management (ILM), a fifth of workers plan to change their job this year, with a further 31 per cent unsure whether or not they would stay in their current employment.

This is likely to pose a challenge for many employers who are looking to boost their workforce as business confidence continues to increase, highlighting the need for business owners to consider how they might retain key members of staff.

For many employers, losing key employees could put paid to their plans for growth this year.

One way to retain staff is to offer an employee share scheme, such as an Enterprise Management Incentive (EMI). An EMI scheme is an excellent way to allow your employees to acquire shares in a tax efficient way over a period of time. This can increase motivation among your workforce which, in turn, can improve their performance.

An EMI scheme is a good way of retaining key employees, particularly at critical times such as the early stages of your company or when you are working on a major project. By turning cash benefits into future share rewards, an EMI can effectively lock an employee in to your company until the point of a sale or another significant milestone is reached.

If you are considering implementing such a scheme then it is important to seek professional advice first, to ensure you are choosing the right scheme for your business.

For more information, please contact our expert Joel Harding