Bill and Frank own a very successful small business, and part of the reason for their success is that they have one of the top salesmen in their industry working for them – Patrick. He is actually the rainmaker who generates most of the sales to clients.
Because of his skills, he has recently become visible to competitors and is actively being recruited away. Bill and Frank would like to retain Patrick, but they are unable to offer him an appropriate increase.
So when he leaves, not only do they lose a key employee, but they will also lose a large number of their clients.
What they could have done years ago, when they were making profits, was set up a deferred compensation program which would only vest after an extended period of time – 10 years or more. And the only way their employee would have been able to access those monies would have been to stay with the company. This is known as “Golden Handcuffs.”
Concentrix can lead you through the complexities of setting up a program – and show you how the plan can even be discriminatory – providing it to only a key rainmaker without having to provide the incentive to the entire employee base.
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