SAP has twigged that working for a management outfit which is a little on the dull side is proving a little difficult and is now bribing its employees to stay.
The outfit, which designs highly profitable software, has decided to offer its workers what is described in the business world as phantom stock.
What this means is that instead of giving its staff cash bonuses it will throw them a few shares in the company in a bid to keep them. The upside is that these shares are currently trading at the highest level in 11 years. The downside is that they may fall.
SAP is clearly worried about losing some of its talent as it embarks on overtaking Siemens and develops more cloud based software. It wants to hold on to as many of its 54,000 employees as possible.
According to co-chief officer Jim Hageman, the incentive program will “make sense” to their workers too.
He told Bloomberg that this was because it would “make them interested” in the share price of SAP and “give them an opportunity to participate in [SAP’s] success”.
And this isn’t the first time the company has done something for its employees. Back in 2006 it set aside millions as an incentive for its senior staff to reach certain goals.
According to Bloomberg this goal however wasn’t met so no one got anything.