It is interesting to note the corporate organizational structure of a company. At the very top level is often the board of directors, who are ultimately responsible for laying out company policy and making all necessary business decisions. The board then appoints officers who will be responsible for carrying out those policies, and this is where it really pays to promote from within.
Who knows a company better than departmental managers who have been on the job for quite some time? But unfortunately, moving into the role of a company officer takes on a huge amount of responsibility, and many managers aren’t quite ready to make that kind of commitment. What can you do to entice them to accept the offer?
1. Higher Levels of Health Insurance Coverage
This is something that could have a huge impact on whether or not someone would be willing to take on greater responsibilities. Look at labor statistics over the past few years. One of the leading reasons cited when filing personal bankruptcy is directly related to medical costs. Even when insured, out-of-pocket expenses not covered by their insurance can cause severe financial hardships. Offering greater health insurance coverage as part of a benefits package just might tip the scale in your favor.
2. Assurance You Will Back Their Decisions
There are several ways in which you can assure your choice for a company officer that you will stand behind their decisions. One of the reasons a key employee might want to refrain from moving up the ladder is for fear of being held liable for situations beyond their control, which is where directors and officers insurance comes in. By providing Directors and Officers insurance as a key perk, you will be telling that person you are willing to pay the premiums to make absolutely certain they won’t need to pay reparation out-of-pocket if named in a lawsuit from a disgruntled employee or customer.
3. Greater Decision-Making Authority
While the board is the ultimate authority in making key business decisions, a company officer is on the job day in and day out. The board typically meets monthly, at which time company policy is discussed by the directors. However, that chief officer named by the board is left dealing with the everyday decisions that need to be made as they relate to policies set forth by the board.
However, there are times when it may be necessary to step away from a particular policy to get the job done. By giving an appointed officer a greater amount of immediate decision-making authority, as long as they remain compliant with company policy, you may find a lesser amount of reluctance to take on that role. Having worked in management, that person may have experienced times when company policy interfered with what it would take to complete a job.
Putting It All Together
Of course, you would want to offer a substantial raise in salary along with other perks like profit sharing and greater paid personal time, but those are expected. The above perks can be the icing on the cake. If you want a person to handle greater responsibility, you need to assure them you have their back. This is how you can do just that.