Key points of promoting long-term incentives for small and medium-sized enterprises
Compared with listed companies and mature large-scale non-listed companies, the development stages and management themes faced by small and medium-sized enterprises have their own particularity. When implementing long-term incentives, they cannot compare themselves to cats and tigers, otherwise they will be "separated". Specifically, the implementation of long-term incentives for SMEs should control the following four key points:
First, do a good job in the level analysis of talents and create the "scarcity" of equity. The reason why equity has the attraction that cash does not, on the one hand, lies in its large appreciation space, on the other hand, lies in its "scarcity". As the saying goes, scarcity is precious, and equity is no exception. This requires small and medium-sized enterprises to adhere to strict standards in the qualification examination of incentive objects, pay attention to the value content and irreplaceable degree of employees' human capital, carefully evaluate employees' professionalism and properly consider the compensation for employees' historical contributions. Furthermore, in order to maintain the "scarcity" of equity, it is necessary to balance the relationship between "profit-making" and "authorization" and adopt different incentive methods for different levels of incentive objects to avoid confusion in decision-making.
Second, control the growth of enterprises and make good use of the value-added space of equity. Compared with mature enterprises, small and medium-sized enterprises have the shortcomings of "small plate", but their flexible growth space is incomparable to mature enterprises. For small and medium-sized enterprises, it is very important to make good use of growth flexibility. When designing long-term incentive methods, we should use the "price difference" incentive tool to fully reflect the value of equity, and this way of obtaining income will also greatly stimulate the enthusiasm of incentive objects. Because, under the incentive system that the work heat determines the thickness of banknotes, employees will definitely face difficulties in the process of starting a business. Microsoft seized this point and gave full play to the incentive function of stock options in the process of starting a business.
Third, highlight the intuition of the theme and reflect the direction of motivation. For a man who treks long distances in the desert, if a fairy tells him that there is water behind the sand dune in front of him, I believe he will be full of running power; But if the fairy told him that gold was buried ten meters underground behind the sand dune, maybe he would have no interest. The same is true of enterprise's talent incentive. The more intuitive the performance target, the more obvious the incentive effect. For small and medium-sized enterprises, when designing incentive objects, they must be intuitive and can be influenced by the efforts of incentive objects (such as sales volume, number of products sold, etc.). ), and the definition of exercise conditions should be as simple as possible. Ambiguous incentive objects not only have no incentive effect, but are easily entangled.
Fourth, do a good job in ensuring funds and try to avoid equity disputes. For small and medium-sized enterprises, protecting the security of financial data is very important. In the case that the financial accounting system is not perfect and standardized, the company's share capital, the incentive amount of the incentive object and the profitability of the enterprise are all trade secrets. Once leaked, the consequences will be very serious, even fatal. Therefore, when implementing the long-term incentive plan, we must properly handle the relationship between "openness" and "confidentiality", which should not only reflect the incentive of the rules of the game to all employees, but also avoid malicious competition, poaching and unnecessary equity disputes from competitors.
In short, for small and medium-sized enterprises, long-term incentives are both timely rain and a double-edged sword, which must be treated with caution.
The above is the answer given by Jingbang Consulting according to your question, hoping to help you. After consulting by Jingbang, 17 is mainly equity.