A D V E R T I S E M E N T


Author Topic: Employee Retention  (Read 727 times)

0 Members and 1 Guest are viewing this topic.

Offline paviod

  • Registered User
  • Posts: 25
Employee Retention
« on: September 25, 2022, 12:21:56 PM »
Hi all, wanted to gauge your thoughts on how to retain great employees. We have a person that has been with us for years and there are plans for expanding to a second location. I feel as if we don't offer something beyond a raise they will go off and do their own thing eventually. They have shown interest in helping expand but want to ensure they're in it. What have you done to keep these valuable people? We have thought about a % ownership of sort and i know we will need to draft a contract up with a lawyer but figured I'd ask here to see what others have done. Thanks.

Offline waltertore

  • Lifetime Member
  • *
  • Posts: 4514
  • Location: Reno, Nevada
  • HANDMADE SICILIAN/GRANDMA PANS
    • Smiling With Hope Pizza
Re: Employee Retention
« Reply #1 on: September 25, 2022, 01:46:07 PM »
Hi all, wanted to gauge your thoughts on how to retain great employees. We have a person that has been with us for years and there are plans for expanding to a second location. I feel as if we don't offer something beyond a raise they will go off and do their own thing eventually. They have shown interest in helping expand but want to ensure they're in it. What have you done to keep these valuable people? We have thought about a % ownership of sort and i know we will need to draft a contract up with a lawyer but figured I'd ask here to see what others have done. Thanks.

We are a small operation and only have a few very part time employees. If we had an operation that employed full time people and one shinned like this, giving partial ownership would be the way it would go.   With a long timer like you have we would start with about 5% and then another 5% after 5 years more of service and keep it going on that schedule.   That way they have to stay the 5 years to the additional 5%.  You can also build in bonuses if they meet or exceed certain criteria. This will give them a stake and probably stick around. 
« Last Edit: September 25, 2022, 03:38:45 PM by waltertore »
PURCHASE OUR HANDMADE 22 GAUGE COLD ROLLED STEEL SICILIAN/GRANDMA PANS
https://www.swhenterprises.com/

Offline paviod

  • Registered User
  • Posts: 25
Re: Employee Retention
« Reply #2 on: September 25, 2022, 07:02:28 PM »
Thank you for your reply

Offline Pizza_Not_War

  • Supporting Member
  • *
  • Posts: 3581
  • Location: Portland OR
Re: Employee Retention
« Reply #3 on: September 25, 2022, 07:37:08 PM »
Talk with employee and see what they think is a good motivation to stay. Not everyone wants to be an owner, some just want more money or recognition.

Online Timpanogos Slim

  • Supporting Member
  • *
  • Posts: 746
  • Age: 47
  • Location: Utah
  • Pizza time! Pizza time! Pizza time!
Re: Employee Retention
« Reply #4 on: September 26, 2022, 01:16:47 AM »
Talk with employee and see what they think is a good motivation to stay. Not everyone wants to be an owner, some just want more money or recognition.

Worth understanding.

I work in software - have done since the 90's. I am not much of a coder, and have mostly worked in quality control - which means more than most people fathom. Programmers don't always have a clear concept of how the software really gets used. Frequently they don't even bother themselves with what it actually does. That sounds like hyperbole but it is not. The ability to compartmentalize and abstract the task to be completed is taught at the university level and they literally learn how to get the job done without understanding it.

In 2002, after the dotcom bubble had well and truly burst, i was unemployed along with half a million of my peers in the US, and about 20% of gas stations with pay-at-the-pump function were running code that, when i inserted my card, would crash and reboot. I cannot express to you the level of rage this inspired in me at the time. Particularly considering that it betrayed that someone just like me had been laid off, just like me, because management decided that they didn't need to pay someone to check things like that.

In 2012, with a great deal of trepidation, i made my first foray into managing a software quality team.

2013 was easily the worst year of my life. I let down several people, and identified a handful of people whom, if they died in my general vicinity, would require me to solidify a really good alibi. People whose graves i fully intend to desecrate. People who, if they asked me the time of day even now, may not escape unbloodied.

So yeah. Have a heart-to-heart. Find out what they truly aspire to. Make sure the ends are open. That job with the disaster management role - i really, truly, deeply cared about the work i was doing and the customers i was serving. And there are people i worked with there whom i mourn having let down. And a few people i worked with there who may yet suffer my wrath.
« Last Edit: September 26, 2022, 01:20:37 AM by Timpanogos Slim »
Pepperoni is just American chorizo.
- Eric

A D V E R T I S E M E N T


Offline stamina888

  • Registered User
  • Posts: 297
  • I Love Pizza!
Re: Employee Retention
« Reply #5 on: October 24, 2022, 09:16:26 AM »
Hi all, wanted to gauge your thoughts on how to retain great employees. We have a person that has been with us for years and there are plans for expanding to a second location. I feel as if we don't offer something beyond a raise they will go off and do their own thing eventually. They have shown interest in helping expand but want to ensure they're in it. What have you done to keep these valuable people? We have thought about a % ownership of sort and i know we will need to draft a contract up with a lawyer but figured I'd ask here to see what others have done. Thanks.

As an employee, and from what I've seen from other employees too:

Am I learning new skills in this job?  Is what I'm doing in this job able to look really good on a resume to apply for future jobs?  It's not just about the current wage, but what skills can I learn here that can help me significantly increase my pay in a future job 5+ years from now?

The social atmosphere is important too.  Does the place feel like family?  Do the employees respect the managers as highly competent people who they can learn a lot from?  Another factor is does this job expand the amount of people I have access to, which is admittedly hard to do for smaller businesses, but some people can meet business partners, friends or even romantic partners through mutual friends of coworkers.  It's hard to meet people as an adult, and I understand this isn't the main function of the job, but if a job is half of your life, you want to feel some sort of social value or importance.

Offline TXCraig1

  • Supporting Member
  • *
  • Posts: 29876
  • Location: Houston, TX
  • Pizza is not bread.
    • Craig's Neapolitan Garage
Re: Employee Retention
« Reply #6 on: October 24, 2022, 10:41:49 AM »
A couple thoughts on granting equity:

- Giving stock ownership creates an out-of-pocket cash tax liability for the employee. The value of the shares that are granted must be reported as ordinary income to the employee. Granting stock options, stock appreciation rights, phantom stock, etc. does not create this problem.
- If you decide to grant shares, look into what's known as a "Section 83(b) election."
- Subject whatever equity you decide to grant to a vesting schedule. Don't give them equity that they can keep if they walk soon after. Also note that stock grants create a tax liability when the vest that's based on the market value at the time of vesting unless you make the Section 83(b) election.
- Whatever you do, see professional advice to maximize the value to both you and the employee and to keep you both out of trouble with the IRS.
"We make great pizza, with sourdough when we can, baker's yeast when we must, but always great pizza."  
Craig's Neapolitan Garage

A D V E R T I S E M E N T