I recently read this article on CNNMoney and was impressed with Dan Schneider’s way of telling his employees that he values them — if they stay at his company for five years they will receive a $50,000 bonus. And, layer on another $50,000 for each five years after that!
Organizations are always looking for ways to retain talent, and a bonus is one of those options. The bonus sends a message to his employees about how much he appreciates what they are contributing, and how important it is to him to have them stay around.
It’s also smart business sense on Dan’s part. He recognizes the value of the training and skills that his employees have, and the cost that would be associated with having to bring on board new people.
Having a common reward system across your employees can establish a peer structure that fosters a culture of collaboration more than competition. And, people who are satisifed with their current job, and are planning to stick around, contribute much more to the organization than people who are actively looking for their next job!