How to Capture Top Talent with Accelerated Executive Benefits
Does the size of a company matter in the competitive search for executive and employee talent?
It shouldn’t. But it does. And yes, size matters a great deal. If you own or represent a small, mid-sized business (SMB), the same opportunities major corporations use to attract top talent do not exist for you. Different tax structures and government restrictions limit movement of SMBs.
And yet, SMBs comprise 99.7 percent of all employers—the backbone of the American economy.
Still, several effective ways exist for small business owners to attract, reward, and retain top talent and, at the same time, remove the barriers that restrict pass-through entities like LLCs, S-corporations, and partnerships.
For example, select application of nonqualified deferred compensation (NQDC) plans can take the sting out of an absence of equity benefits. Life insurance can be designed to pay out total compensation to executives. Executive disability wrappers can cover salary, bonus, and long-term incentive compensation to provide a meaningful benefit.
Tax-advantaged accounts and strategies can be put into place to compensate for the discrepancies between small and large companies, including Defined Benefit Plans, Defined Contribution Plans, 401(k)s, Sep IRAs, Simple IRAs, Life Insurance Retirement Plans (LIRP), and Split Dollar Plans.
In our latest white paper, “How Small Business Owners Compete with Major Corporations in the Quest for Great Talent” you’ll learn how to plan for unknown tax liability, how to keep more of what you defer, and what to do to develop and maintain an engaged and committed executive team.