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Employee incentives for long-term loyalty
Incentivising employees to stay and prosper
Giving your employees reason to focus on the long-term success of your organisation creates better employee engagement, stronger leadership behaviours and greater personal and organisational growth. It can also help to build a positive company culture.
Long-term incentive plans (LTIPs) focus on financial rewards for employees who stay with your organisation and contribute to your success. A well-designed plan can change mindsets that may otherwise lead to short-term outlooks and poor decision making.
How does a long-term incentive plan work?
This type of incentive programme is designed to reward long-term employee performance. An example of a long-term incentive could be a cash plan, equity plan or share plan. A long-term incentive plan can typically run between three years and five years before the full benefit of the incentive is received by the employee. Rewards can either relate to a performance period or be given when employees achieve key strategic milestones.
While these plans have typically focused on executive compensation, they are increasingly being applied company-wide to reward employees for their hard work and commitment. An effective plan balances the interests of employees with the needs of the organisation, shareholders, regulators and other stakeholders.
Long-term incentive plan consulting
Any employee recognition programme should be integrated into the company’s overall employee engagement strategy. Seeking the advice of an independent reward specialist can help you step back and see the bigger picture.
Our consultative approach means that will take the time to understand your organisation, its values and objectives, and plans for the future. We will bring appropriate challenge to your thinking, offering alternative approaches for you to consider that will complement and enhance your wider compensation and reward strategy.
Plan design for your organisation
We craft solutions using schemes such as cash plans, equity plans, stock options and share incentives. We can advise you across the full employee spectrum – from your executives to all-employee schemes, and also internationally.
Whether you are a private, public or third sector organisation, private equity-backed, family owned, limited liability partnership, mutual or charity, we can design a long-term incentive plan tailored to your distinct needs and company vision.
Connect with Gallagher
Many prestigious companies, organisations and partnerships have benefitted from our specialist consultancy services to create long-term incentive plans for their valued employees. If you would like to talk to us about designing a plan for your organisation, please get in touch.
Long-term Incentive Plans
- Plan advice for all types of employer
- Equity plans
- Share options
- Cash plans