Consider corporate objectives.
Future compensation can:
- Drive performance.
- Drive corporate messaging.
- Incentivize and retain new hires.
- Replace lost benefits (“make whole” arrangements) for new hires.
- Improve employee morale.
- Award spot bonuses or special project bonuses.
- Manage compensation subject to clawback.
- Incentivize employees to accumulate company stock on a tax preferred basis.
- Supplement existing retirement programs and Social Security.
- Facilitate financial wellness, creating consistency with other companies’ initiatives.
- And inspire retention.
Retention is a Reflection of Loyalty
- Loyalty occurs when the needs of both parties are satisfied
- Deferring income is an act of trust and faith between the company and the employee.
- Employers and employees who partner for their common interests, achieve strategic success through effective plan sponsorship. This reveals loyalty from employer to employee and from employee to employer.