Following the fun and excitement of a busy festive period, going back to work and a mundane routine in the New Year is a struggle for many employees.
Getting a new job is in the top ten New Years’ resolutions in the UK, so businesses need to keep their employees incentivised and motivated to be confident in retaining their workforce in 2020.
Who would want to lose a key member of staff to a competitor or have those individuals set up their own Business and becoming a competitor. An option for Companies to consider is share based incentives such as the Enterprise Management Incentives.
Available to businesses with assets of £30 million or less, EMI operates through the use of share options. It allows employees to acquire shares up to the value of £250,000 in a 3-year period.
Shares can be given at a fixed date in the future or following a pre-determined event. The price of shares will be determined at the start of the process, giving all parties a degree of certainty.
Employees don’t have to pay Income Tax or National Insurance if they buy the shares for at least the market value they had when they were given the option.
There’s benefits for businesses too. The EMI scheme is flexible so companies can choose which employees should receive the share options by quantity – meaning rewards can be precisely targeted.
So, make looking into EMI one of your New Years’ resolutions. With the value of shares increasing as the company expands, it’s an ideal way to keep your workforce motivated so your company can continue to grow.