SMEs can use employee equity to retain top talent, says EHS chief
Chris Mee, founder of EHS International, who has made employees and contractors across all divisions of the company official shareholders as part of a newly launched share scheme.
Employee ownership is an innovative way to boost key staff retention and to attract new talent into smaller companies.
One Irish SME that is aligning employee equity with its talent strategy is EHS International, a consultancy delivering training, fire and rescue, recruitment, and support services. EHS is using equity as a motivator for staff, strengthening company identity while it competes for talent with multinationals and other larger employers.
EHS International has made 62 employees and contractors across all divisions of the company official shareholders in the company as part of a newly launched share scheme. This gives them a direct financial stake in the company.
EHS International is putting up to a quarter of the company’s value into the hands of its people across five phases (2025–2029). The move is designed to futureproof its workforce, strengthen loyalty, and compete for hard-to-find talent.
In this Q&A interview, Chris Mee, founder of EHS International, explains the logic behind this strategic move by the company’s talent retention strategy.
For smaller firms like us at EHS International, culture has to be real and it has to be lived every day. We cannot compete with multinationals by trying to match them on pay alone, because that is not feasible. The advantage smaller organisations have is manager proximity to the employee or contractor, manager likeability and the respect a genuine connection that the front line worker has for him/her.
At EHS International, the hierarchy is not complex and people have clear and easy access to their manager be it the owner or any other senior manager. Staff can influence decisions and if someone performs well and shows commitment, they are noticed quickly and their effort is acknowledged. If the effort results in positive results for the organisation the employee is rewarded be it with shares, with wage increases or with other benefits in a clear and commensurate way. This approach creates momentum and a sense of purpose that is very hard to replicate in larger and more complex organisations/structures.
The old maxim is that people leave people – they also stay with people. We are very clear about what we stand for, and we back that up with action. The decision to bring over 60 colleagues in as co owners was not symbolic. It was a statement that contribution matters and that long-term commitment will always be rewarded in a meaningful way. We endorse the motto "acknowledge effort, reward results".
Employee equity schemes play a powerful and strategic role when they are implemented properly and for the right reasons. For Irish SMEs in particular, they can align the whole organisation around long term thinking rather than short term gains. As the SME cannot compete on the salary levels versus the multi-nationals, our strategic approach to retention and attraction includes shares ownership schemes, manager intimacy, professional development, career progression, work life balance and genuine support.
Equity creates real engagement, shared ownership and commitment. There is more care, more attention to detail, more accountability and more focus on the commercial performance of the company. It also allows smaller firms to compete for high calibre talent who want more than just a payslip. They want involvement and ownership.
For us, equity is about sharing the financial rewards generated by the people working for the company. If people are helping to build the organisation, drive growth and protect standards, then it is right that they share in the value created. That belief sits at the core of our approach.
We have taken a very deliberate approach to retention, because the labour market is competitive and we operate in demanding sectors.
The first feature is for us to have managers who have good inter-personal skills and competence in their areas of responsibility. Staff seldom leave managers that they like and/or managers that they respect for their high knowledge levels.
The second feature is to reward good results in a proportionate way. These rewards can include paying our people in the top quartile of our industrial sector and then of course by our annual issue of shares to staff in a way that is proportionate to the results they deliver for us. Our long-term incentive scheme is very unique in our sector.
We also invest in our people with training and mentoring. Our performance management systems include yearly professional development programmes. We want people to see a future with EHS International and to see us as a career and not just a job.
Career progression in our organisation is another key attraction and retention factor. When we are looking for a new manager, we like to promote from within if possible. So at every opportunity we will nurture internal staff before looking outside the organisation.
Our people are primarily human beings and not machines. Hence we have a positive support approach for our people in times of stress or challenge – be that in at work or in the home.
Yes – it is absolutely critical. Growth without staff/contractor loyalty becomes very fragile to say the least. As you scale, you need people who understand the business, who share our standards and care about how the organisation is represented. Our staff are our biggest ambassadors and their loyalty and competency is key in them representing us well.
For us, loyalty is not something you demand. It is like respect and it must be earned and reinforced all the time. You earn it by being a consistent, competent and likeable manager. Our aim is to build a business based on people who feel proud of what they are part of and who are motivated to stay with us for the full journey, not just the next milestone.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
