Without doubt, a motivated, enthusiastic team has a positive impact on your bottom line profitability.
The big challenge is keeping your people motivated in a tax efficient manner. This is where rewarding your staff through incentive schemes can help.
bonuses and performance related pay
Bonus calculations can be subjective, and worse still, based on emotion. But done well, they can be very effective indeed.
We can help you to introduce a bonus scheme based on achieving agreed targets and KPIs, incorporating all of the workforce, or just your key people if you prefer.
EMI schemes and share options
A share option scheme means that you enter into a share option agreement with your employees for a set period, and at the end they have an option to buy shares in your company.
EMI schemes are the most common these days, and are a great way of locking in key individuals who are critical to your business. Here an employee can exercise their right to buy shares in the future at an agreed price.
The scheme can be set up for just one person if you wish, and is very tax efficient for both the company and the employee.
If you are interested in this, just get in touch and we’ll send you our step by step guide to the scheme.
salary sacrifice arrangements
Here your employee gives up the right to part of their cash salary, in exchange for something else. This is becoming an increasingly popular way of remunerating
employees, particularly in conjunction with pension contributions.
ideas on how to pay your staff
Here’s just a few creative ways that you can replace some of the salary with other benefits:
- company car
- childcare vouchers
- other vouchers
- health and medical welfare
- mobile phones
- training and education
- cheap loans
Variable salary packages are becoming very popular, so it’s important for you to be competitive. Offering a flexible package will not only help with your staff retention levels, it will also make you attractive to new recruits.
how can Mitten Clarke help you?
It’s important to talk to us before you make any changes to the way that you pay your employees. We can help you:
- establish an effective bonus scheme
- set up an EMI and/or share option scheme, dealing with all of the paperwork, getting approval from HMRC and liaising with lawyers
- calculate the net pay position for the employee if you are looking at salary sacrifice or non-cash payments
- calculate the costs and establish the benefits to the company.
If you’d like fresh ideas for staff incentives, contact our expert team today!