THE CHALLENGE

Bridging the Motivational Gap at a 130-Year-Old Company

The Cary Company knows that good people are the secret to longevity. The 130-year-old family-run business had a generous long-term incentive plan (LTIP) with good buy-in and a profit-sharing structure that was 100% company-financed. 

LTIPs have a vesting period and are only available to employees with a specific tenure. For newer employees of The Cary Company, LTIP benefits were often "out of sight, out of mind," meaning they weren’t effective at encouraging long tenure. 

The Cary Company set out to redesign its compensation strategy to maintain its appeal to employees who valued the existing plan while engaging and motivating those who sought more immediate recognition and rewards. The ideal compensation solution would bridge this gap without disrupting company culture or alienating any generation of employees.

The Solution

A Consultative Growth Partnership With VisionLink

To complement its existing LTIP, The Cary Company searched for a growth partner who could help structure, implement, and measure the success of a short-term incentive plan (STIP).

The VisionLink Approach

Creating a Company-Wide Profit Driver

VisionLink worked closely with Tyrrell to understand his company's needs and challenges, guiding the plan's structure and helping determine metrics and targets. Honoring the company’s long history of collaboration, VisionLink recommended an "all in it together" approach that focused on company-wide profit as the primary driver for the STIP. This recommendation aligned with Tyrrell's goal of fostering a unified company culture where all employees work towards common objectives.

The STIP included different tiers based on an employee's impact on the organization, with most target opportunities ranging between 5% and 10% of their annual salary or wages. VisionLink also helped incorporate a performance-based element, where employees could receive 50% to 110% of their target payout based on individual performance ratings. With the proper implementation and management, this type of incentive would encourage individual leadership and collective investment in company growth.

Results

A More United Company, Trending Above Target

The Cary Company reports the following outcomes from its STIP implementation through VisionLink:

• Bolstered Communication
  Implementing the STIP has led to more frequent and transparent discussions about the employees' role in achieving company growth goals, resulting in better communication and alignment.
• Increased Engagement
  Under the new incentive plan, younger and newer team members have an increased interest in The Cary Company's performance and an improved understanding of their role in achieving its financial targets.
• Talent Attraction and Retention
  The new plan is a tool for attracting and retaining talent in a competitive job market.
• Operational Efficiency
  With VisionLink PRO (VisionLink's online software platform), The Cary Company can effectively administer its incentive program without the need for additional staffing and plan management.
• Cultural Unity
  The Cary Company is committing to the philosophy "when the company wins, you win." This is what led to the examination of its rewards approach. Its new incentive plan is fostering a more unified company culture and fulfilling its pay philosophy.

The new STIP rollout has even led to several "lightbulb moments" for employees. Many were surprised to learn they could earn additional rewards after hitting the target goal. When members of The Cary Company saw their potential earnings projected through VisionLink PRO, the new plan's benefits became tangible, inspiring greater engagement with performance goals.

The Cary Company is trending above target for its STIP goals, generating employee optimism. Whenever a challenge arises—like communicating consistently and accurately about the plan or preparing for future adjustments—VisionLink is there to lend a hand.