At private companies, plans that mirror stock plans but are based on internal values or deferred-compensation plans are often used for key employees. From an overall perspective, long-term compensation plans can be very effective retention tools. At their most effective, they focus key employees on driving and improving the financial performance of the company over the longer term. A comprehensive, competitive benefits package typically includes medical insurance, life insurance, vacation and leave policies and some form of company-sponsored retirement or savings plan. Plans are typically designed to address the health and welfare needs of the employee population.
Benefits can send strong messages to employees about company culture and values.
To help offset the significant expense associated with comprehensive benefit plans, costs are often shared with employees. Perks and non-cash rewards are used by many companies to recognize significant individual or team contributions to special projects, or for exhibiting a strong commitment to the values and culture of the company. A variety of awards are used including special dinners, event tickets, trips, additional time off, etc. The value and effectiveness of performance feedback, career-development opportunities and the belief that their voices are heard are very important elements of employee recognition. Fundamentally, we all want to feel like we re in a place that values us effectively managed communication and feedback processes can go a long way in promoting this feeling among employees and in retaining critical talent.