Employee Retention & Equity Compensation Strategies
A smarter, values-aligned way to keep and motivate your top people.
Turnover now costs Canadian businesses an average of $29,234 annually, with nearly one in five hiring managers facing losses of $100,000 or more. That is why more business owners are turning to equity compensation—offering employees a real stake in the future they are helping to build.
At Firefly Insights, we design ownership and compensation strategies that give your business a competitive edge—helping you attract top talent, retain key people, and boost performance. With 8–12% higher productivity per employee, employee ownership is not just a retention tool—it is a smart strategy for building a stronger, more resilient business.
Could Equity Be the Key to Retention?
“We’re losing great people, and raises aren’t fixing it.”
“I want to reward loyalty, but I can’t just keep increasing salaries.”
“Isn’t equity just for tech startups or massive corporations?”
Equity compensation doesn’t have to be complex or out of reach. Whether you’re looking to retain key staff, prepare for future leadership transitions, or simply align incentives with outcomes, there are practical, scalable ways to offer employees a stake.
At Firefly Insights, we help businesses implement solutions like Employee Share Ownership Plans (ESOP), phantom shares, profit-sharing, or gradual equity participation—all customized to reflect your business size, values, and growth stage.
Why Business Owners are Choosing Employee Ownership
Attract and Retain the Right People
Employees are more likely to stay—and grow with your company—when they feel like true partners in its success. In fact, employee owned firms report quit rates nearly one-third the national average, according to U.S. research.
Reward Loyalty with Real Impact
Equity and profit-sharing do more than recognize performance—they reward the long-term contributions that shape your culture and drive results. By aligning ownership with commitment, these tools build trust, motivation, and purpose—leading to stronger retention, higher engagement, and a team that is truly invested in the business.
Create a Culture of Shared Success
When your team has skin in the game, you create a workplace where people think and act like owners—boosting engagement, resilience, and performance. Studies show employee owned businesses are more likely to expand headcount, not reduce it—even in times of economic uncertainty.
Lay the Groundwork for Future Transitions
Equity strategies can do more than retain talent—they help prepare your business for what comes next. The right structure builds leadership capacity and strengthens continuity. In employee ownership transitions, 81.8% of staff stay, compared to just 61.2% after competitor buyouts (NCEO).
Is Equity Compensation Right for You?
Equity isn’t just a financial tool—it’s a cultural shift. It’s especially effective for businesses that:
- Are struggling to retain top performers
- Want to reward team members in ways that align with company values
- Are planning ahead for succession or leadership continuity
- Believe in shared success and people-first strategies
If you’re committed to keeping your business healthy, values-driven, and future-ready, equity compensation could be a powerful step forward.
Our Process
Clear, collaborative, and tailored to your business.
Discovery & Fit
We begin by understanding your business needs, growth plans, and team structure. Then we help you assess which equity strategies best align with your goals—whether it’s immediate retention or long-term succession planning.
Plan Design & Implementation
We work closely with you (and your advisors) to design and implement a strategy that’s legally sound, financially practical, and easy to communicate to your team. We focus on simplicity and impact—not unnecessary complexity.
Engagement & Support
We help roll out the plan with clear, team-friendly communication. Post-launch, we provide continued support around governance, team engagement, and evolving the plan as your business grows.
What Business Owners Ask Us Most
What is equity compensation?
Equity compensation is a non-cash form of employee compensation that gives individuals ownership interest in a company. In addition to traditional wages or bonuses, employees receive shares, stock options, or other equity-based instruments that allow them to benefit from the company’s growth and success.
Can a small business really offer equity?
Yes, equity can be a powerful tool for small businesses in terms of retention, growth, and succession. Avenues such as stock option plans, Employee Share Ownership Plans (ESOPs), or Employee Ownership Trusts (EOTs) make it possible to share ownership in a way that fits your goals and stage of business. With the right structure, equity isn’t just for big companies—it’s a smart, strategic move for small business owners too.
How does this relate to employee ownership?
Equity compensation can be a standalone strategy—or a stepping stone to full employee ownership down the road. We help you design a solution that fits today, with an eye on the future.
Do employees need to buy in?
Not necessarily. We can help design models that don’t require employee financing, but still offer meaningful value and retention power.
Let's Talk
Curious about how it works—or if it’s even possible for your business? Let’s start the conversation. You’ll walk away with clarity and next steps, no pressure.