Wednesday, September 10, 2014
I attended a trade show in The Midwest this week and a common lament among small to middle sized business owners was finding and retaining quality employees. I emphasize retaining because there are labor pools, staffing companies and recruiters that all help to place people in specific industries, but very few professional firms will to consult and collaborate on the accounting and tax ramifications surrounding employee retention. The staff at urBook$ handles clients with varying sized workforces, with individual ways of retaining key people. Often times, a long term incentive plan can serve as a way of rewarding and retaining key employees, without diluting ownership, and perhaps offering tax advantages for the business owner as well. Long term plans can also serve as an excellent alternative to the standard raise, which may just be "kicking the can down the road" in the eyes of employer and employee. The accounting aspect of a 401k or ESOP (Employee Stock Ownership Plan) can; however, be a daunting task for the business owner, likely steering them away from considering this as a means of employee retention. At urBookS, we encourage the business owner to let us shoulder that accounting task, allowing the owner to confidently discuss and offer these types of retention plans to key employees. We collaborate side-by-side with your financial planner to implement these types of programs. When these incentive plans are appropriately explained, outlined and administered, they become a mechanism to incentivize those key employees to become even more energized about the company and it's long-term success.
When long-term success becomes the goal of the workforce, the business owner may find them self dealing less with "fire-drills" and more with careful planning an execution. Consider visiting with us at urBook$ to discuss the financial aspects of long term incentive plans for employees and their corresponding accounting needs.