Coffin Mew – putting People First!
Recruitment agencies are very well placed to appreciate the challenge of recruiting and retaining top grade staff; across all sectors this is a key concern of employers and none less so than in the recruitment sector itself. High quality and talented recruiters are the life blood of all recruitment agencies – and their retention is vital, particularly if the strategy for the business is growth with a view to selling the business on when it gets to a certain size.
The sector traditionally relies upon bonus and commission arrangements when it comes to incentivising staff, but it is easy to lose even the best paid recruiter to a competitor which is prepared to pay a percentage or two more in commission!
Increasingly we are finding that companies are looking for longer term incentives – which is why we have launched “People First”, a tax efficient way of retaining key staff, getting them to think about longer term benefits and buying in, emotionally , to the business itself.
It involves granting options under the Government supported “EMI Scheme” for your staff to buy shares in your company –but usually only once you have a buyer for the company. Essentially you are sharing some of the sale proceeds with key staff, but without having to pay employers national insurance contributions on the benefit and with the added incentive for your staff to receive the sale proceeds at a potential 10% rate of tax. They don’t have to come up with the purchase price until the sale and they aren’t shareholders until the company is just about to be sold – so you don’t have to worry about paying dividends to them or what happens to shares if they resign from the Company.
For more information please contact Amanda Brockwell, Partner and Head of Corporate.
Please click here to download our People First brochure.