b'THE OFFICIAL NFBA MAGAZINEKEY EMPLOYEE INCENTIVE/RETENTION PLANSWHAT ARE YOU WAITING FOR?BUSINESS MANAGEMENTT he talent and contributions of key employeesThis article will discuss how to identify your are often cited as one of the most significantcompanys key employees and how to design an value drivers within a successful company.effective incentive/retention plan that is a win-win Properly motivated key employees help buildfor all parties. profits, which in turn builds enterprise value. TheyWHO ARE YOUR KEY EMPLOYEES?also hold the key to successful ownership transition. Contractors that plan to transition ownership to anThe first step in understanding the how and internal buyer need to entice non-family talent towhy of key employee incentive/ retention plans stay the course. And for those owners who plan tois to identify your companys key employees and sell to an outside party, its critical to have a capable,understand what is important to them. motivated, and loyal group of key employees inWhile most employees are motivated for typical order to maximize the sale price. reasons (e.g., a pleasant work environment, competitive pay/benefits, opportunities for advancement, job security), key employees are Developing, recruiting, motivating, and retainingdifferent; they think and act more like an owner. key talent is indeed critical to building companyThey are attuned to company profits, industry value and an owners legacy.trends, competitive advantages, customer/vendor 8 / FRAME BUILDER - MAY2023'