Chartered Accountants
Keeping Your Staff Motivated
While tax can often be seen as tedious, having tax efficient remuneration and motivation strategies in place can make all the difference in keeping your staff on side.
Providing your staff with an equity interest can be delivered without significant tax consequences at the outset through use of share options or perhaps an Employee Ownership Trust (EOT), where control passes to the trust. For business owners looking to reward their employees without handing over control, a Phantom Share Scheme (also known as shadow shares) may give a key employee the benefits of ownership without the actual equity.
Remuneration planning can also be an important factor in retaining your key people. This could mean anything from salary sacrifice planning, tax efficient benefits in kind or perhaps corporate pension contributions to an employee’s personal scheme.
Being seen to actively identify savings for your staff, particularly during this cost of living crisis, will give you the best opportunity of keeping great people. After all, almost all successful businesses have a motivated, happy team where opportunity to progress is balanced with excellent and fair remuneration.
Our Employer Solutions Taxperts can help you structure a reward strategy that’s right for you, and ensures your employees are not given an excuse to leave. For more information, get in touch by calling one of our offices or emailing [email protected].
