Achieving your mission is not possible without the right leadership. As leaders, you can lay out a compelling vision and foster a culture that encourages and motivates people to action. Culture alone, however, is not enough. To attract—and keep—the highest performers, you need to assemble a total compensation package that addresses both short-term and long-term needs for income.
Short-term compensation—the base salary and bonus—help fuel today’s lifestyle. It’s important to benchmark those regularly, and there’s a best practice for doing that; that is a subject for another article.
Only relying on current cash compensation, however, is risky as there’s always a bigger checkbook elsewhere. Every employee, especially an executive, needs to plan for the day when their current income ends (retirement). Including elements of long-term compensation helps both retain and reward your key people. These elements are generally referred to as executive benefits.
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