If retaining your best employees is an area that needs improvement, incremental vesting could be a solution. It’s easy to implement, but also works concurrently with the “carrot and stick” motivation principle. People love positive motivation – we’re biologically wired for it.
We’re motivated by interesting work and growing responsibility, but also need personal growth – it’s crucial for survival in the marketplace. Motivated employees work longer and harder to ensure that not only are their personal goals met, but they routinely go above and beyond.
One of the most effective ways to motivate an employee is offering a tiered system of vesting perks over time. With Genius Pay from Student Loan Genius, companies can increase the amount they wish to contribute toward student loans based on tenure. Companies with a small, part-time staff will offer a small repayment amount and gradually increase over time, but the larger, enterprise-level have started at $100 a month with yearly increases.
There’s a 15.1% employee turnover rate in every industry. Most Millennial employees will leave for a better deal with little consideration. Thanks to Google, they know what the competition is offering.
The average employee stays at a company for two years, but studies show if a company offers an impressive benefits package, employees are more likely to make it past the four-year mark, which leads to longer-term employment. Vesting over time might be the answer to keeping a few of your best employees and probably everyone else, too. Is the carrot and stick motivation principle right for your company?