Keeping 'Em

Sibson Consulting says employees reported they would most likely be lured away by, in order: grants of equity, additional vacation days and bonuses. "The results indicate that management often offers the wrong kind of inducements to get employees to join or remain with their company," says Sibson senior vice president Gerald E. Ledford Jr. "The exact mix of rewards that is most attractive and cost-effective for a given type of employee can only be determined by study. For example, the average U.S. employee can be lured to a new company by just a few shares of company stock. However, this does not work as well with employees who already own company stock, and some employees do not want stock at all. Figuring out what mix of salary, bonuses, incentives, equity and benefits will be most effective is an activity that can deliver an astounding return on investment. The rate of return will only grow as the economy picks up."