Why the Executive Bonus Plan Is the Ideal Golden Handcuffs

https://www.youtube.com/watch?v=PzRUPmixpVQ The Executive Bonus Plan can be the ideal “golden handcuffs” for the top talent you can’t afford to lose.  In truth, associating long-term dedicated employment with slavery seems a bit archaic and melodramatic.  We all know you can’t keep good people by holding them hostage.  Instead, you’ve got to set the table that attracts them and makes them want to stay. That’s where the Executive Bonus Plan rises to the occasion.  It can help you serve up a scrumptious benefits package to find and keep the best people so your business can fulfill its mission. In today’s show, we’ll discuss options for deferred compensation and fringe benefits that create a win-win for the employer and the employee.  And we’ll show how the Executive Bonus Plan is a recipe made with cash value life insurance.  That makes it the perfect way to offer something of future value that they’ll have to – and want to – maintain employment to get. The Competition Today’s Employers Faces In a growing economy with declining unemployment rates, everyone’s hiring, but few people are looking for work. So, employees, who have their pick of employers, are in the position of leverage.  Because the pool of available labor is smaller, it costs more.  So, companies have steeper competition to get the best employees.  They have to be willing to pay more, and often will have to do quite the song and dance to win them over.  That means paying more or offering more benefits and perks. The competition businesses face is compounded by the current mindset towards employment in general.   Company loyalty is a lower priority than personal advancement.  Long gone are the days when people worked for one company their whole life.  A good person needs to feel engaged, appreciated, rewarded, and fulfilled.  If not, there’s little stopping them from leaving in search of another place of employment where they’ll thrive. Fringe Benefits Help Employers Spend Less to Compete That also means that businesses are the ones with the most at stake if good people leave. They could lose contracts, revenue, and momentum when their intellectual capital walks out the front door.  And it could be difficult, time-consuming, and expensive to find a replacement. Therefore, the onus is on employers to create an employment dynamic that great people want to be a part of.  Offering high-quality fringe benefits is one way that employers can extend the handshake that turns into the ideal kind of loyalty. Employers have to exert more effort upfront – and more dollars – to reach ideal candidates to fill their most important roles.  And to keep them as long as possible. In “HR speak,” this is attracting and retaining top talent.  Where the Executive Bonus Plan Fits into the Cash Flow System Executive compensation and benefits are just one part of a bigger journey to building time and money freedom.  That’s why we have created the 3-step Business Owner’s Cash Flow System.  It's your roadmap to take you from just surviving financially, to living a life of significance, purpose, and financial freedom.