Recognize and Reward
Posted on: April 9th, 2013 by deliafg (Author)
Having a program for recognizing and rewarding key people is a sign of long-range planning. It shows that the owner has a vision for the future and wants the company's most valuable people to be part of it. The potential to participate in these rewards also can increase the incentive among rank-and-file employees to work harder, upgrade skills and assume responsibility.
Also, rewarding key people can be a preliminary step in identifying a successor owner or manager. This process can potentially help the company survive the unexpected loss of a current owner, while creating the liquidity to buy out the owner's interest and provide financial security for heirs.