Using long-term rewards
The right long-term rewards can be invaluable for ensuring employees focus on the right business goals, and help increase staff retention and future planning. Hay Group can help you put in place the right programmes to reap the benefits today and reward your staff tomorrow.
Long-term incentives ensure that executives focus on what’s best for the organisation well into the future, not just the current bottom line. They create a focus on medium and/or long-term goals and also help instill a sense of ownership of those goals. As a result, they can help employers to:
- align rewards with shareholder interests
- retain key people (especially in critical periods such as pre- and post-sale or IPO)
- provide a competitive or differentiated total remuneration package
- align people costs with business results, and
- increase employee commitment/engagement.
But finding the right incentives – and identifying the right targets for long-term rewards – can be complex, especially when you need to balance them with short-term rewards. Hay Group can help you design and implement long-term incentive plans effectively to create a clear, competitive edge.
Why Hay Group
Hay Group offers a powerful combination of experience, expertise, business/market knowledge and insight, databases, global network and total remuneration perspective. We understand people, especially when it comes to their motivation and behaviours.
Our long-term incentive programmes reflect these different skills and resources. We not only identify the right goals for long-term rewards, but also the right staff to incentivize, while our expertise and experience ensures that our recommendations reflect legislative and regulatory requirements and shareholder concerns.
All of this is backed by our capacity to compare rewards and remuneration across global organisations, providing you with a clear picture of long-term incentive practices in other organisations, with the added insight into why different types of plans tend to be used.
Hay Group’s approach
Hay Group works closely with key decision makers and financial professionals, exploring business strategy, business model, key performance indicators (KPIs), culture, and reward strategy. Along the way, we can help clarify any or all of those areas, if necessary.
Our main objective is to develop detailed plan designs that meet the requirements of the business and the reward strategy. We look at what areas are best suited to long-term incentives and model the value and cost of different long-term incentive options. We can outline cost and accounting implications for the organisation, as well as tax implications for the organisation and participants.
Once the plan is in place, we can assist you in implementing and communicating the chosen strategy, and present those proposals to key shareholders.
Hay Group in action
Hay Group has helped develop put in place long-term incentive programmes for many organisations.
Find out more
To discuss how long-term incentives could help your organisation, please contact us.