Your family enterprise is your life’s work, and long-term incentive planning (LTIP) can help protect your legacy. In this installment of our eight-part series, “Pivotal moments for family enterprises,” we’ll explore the ways in which LTIPs can help to attract and keep top talent, increase shareholder value, create internal alignment, and incentivize performance.
Many companies describe talent as their most valuable asset. Today, with the demand for talent outpacing supply, many employers are prioritizing attracting and retaining a high-performingworkforce.
Today’s top talent has an advantage, and they know it. With so many job options, candidates are empowered to dictate where they work, how they work and—of course—what they’re willing to work for. And if you think public companies are the only ones struggling with this, think again.
Many family enterprises are also feeling the strain of today’s tight labor market. In the past, these organizations might have promoted talent from within their own ranks. Today, many family enterprises are competing with publicly traded companies for candidates as successive generations consider opportunities outside the family business. Likewise, some family enterprises are choosing to look externally—such as to executives from adjacent industries—as the operational needs of the business become more complex. These factors, in part, have driven many family enterprises to create more comprehensive compensation packages, specifically award programs.
From redefining compensation for the changing talent landscape to core components of an LTIP and making a good plan work even harder—there are key elements to assess when considering next steps.