Retaining key employees is a key consideration for almost every business. Long-term incentive plans are usually awarded to senior executives in an organisation and normally take the form of increased shares in the business without cost.
Long-term incentive plans are usually awarded to employees once they have reached or met specific goals or requirements. In the same way other incentives are designed to retain valuable people, these can achieve the same objectives.
Long-term incentives are therefore often offered as a way to promote further staff engagement and alignment with the strategic goals of the business, over a longer period of time. The more “long-term” nature of these incentive plans means that they are most likely to work effectively in respect of the long-term engagement and retention of key employees.
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