Christine Trumbull is a Certified Exit Planning Advisor and the founder of Pinnacle Exit Group. 28 years of experience in financial and business management have led her to her current role: ensuring seamless transitions for founders and their families.
A trusted resource for family-owned and closely held businesses looking to take their company to higher places.
Successful businesses require many types of employees to succeed. But it’s vital to know which employees are key employees, which are important employees, and how to properly motivate the latter group. Today, we’ll share a process to help you motivate important employees who aren’t key employees.
You likely have more important employees than key employees at your business, which makes it critical to know how to motivate them. Before you can properly motivate important employees, it’s essential to know the difference between them and key employees.
Key employees often have leadership or ownership ambitions. Important employees may be happy in their roles and don’t necessarily have the skill or motivation for ownership.
This key difference means that owners should avoid treating these sets of employees the same. For example, you’d be more likely to create a comprehensive incentive plan to motivate, retain, and reward key employees. Often, these incentive plans move key employees toward bigger responsibilities (and bigger rewards for fulfilling those responsibilities).
But important employees—who may not be able to fulfill or don’t want the responsibilities that come with comprehensive incentive planning—likely have different motivations. Here are a few ways to keep these important employees motivated.
A fatal mistake many owners make is assuming that employees view themselves the same way owners do. It’s surprisingly common for owners to assume that employees have bigger or smaller ambitions than they really do, which can cause owners to use improper motivational techniques.
So, before you commit to any hard strategies to motivate any of your employees, it’s a good idea to understand your employees first. For instance, you may work through a process to determine where your longer-term employees see themselves in the business in the future. You may use that process to ask them what aspects of their time with the company they’ve enjoyed most, and when they’ve felt most appreciated or valued.
Once you understand how your employees view their futures and pasts, and combine that with the roles you want them to play in the company, you can more accurately decide whether each of them is a key employee or an important employee. From there, you can work with your advisor team to craft programs that properly motivate your employees.
Important employees, like key employees, want incentives. However, the kinds of incentives you provide important employees will likely be much different than those you provide key employees.
Whereas key employees often look for greater leadership opportunities and hefty monetary rewards for going above and beyond, important employees may not have interest in those kinds of rewards or responsibilities. They may find more value in some of the following:
Important employees may lean toward recognition and perks more than being a mover and shaker at the company.
Just because an employee isn’t key doesn’t mean they aren’t valuable. As you implement motivational strategies, it’s crucial that you avoid underselling how essential your important employees are.
Doing so often requires careful communication and consideration. In other words, you don’t want your important employees to believe that you think less of them just because they don’t have ambitions for things like ownership.
Important employees want you to understand, value, and reward them, but differently than key employees. By acknowledging their importance and implementing appropriate motivational strategies, you can keep important employees on board and contribute toward your company’s future success.
We strive to help business owners identify and prioritize their objectives with respect to their business, their employees, and their family. If you are ready to talk about your goals for the future and get insights into how you might achieve those goals, we’d be happy to sit down and talk with you. Please feel free to contact us at your convenience.
The information contained in this article is general in nature and is not legal, tax or financial advice. For information regarding your particular situation, contact an attorney or a tax or financial professional. The information in this newsletter is provided with the understanding that it does not render legal, accounting, tax or financial advice. In specific cases, clients should consult their legal, accounting, tax or financial professional. This article is not intended to give advice or to represent our firm as being qualified to give advice in all areas of professional services. Exit Planning is a discipline that typically requires the collaboration of multiple professional advisors. To the extent that our firm does not have the expertise required on a particular matter, we will always work closely with you to help you gain access to the resources and professional advice that you need.
Any examples provided are hypothetical and for illustrative purposes only. Examples include fictitious names and do not represent any particular person or entity
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with 28 years of experience in financial and business management. Christine
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