New systems of rewarding, motivating and building employee loyalty are raising the general interest of entrepreneurs in Poland. One of such instruments is the notional share that is gaining popularity in the Polish market. Its essence and application possibilities are discussed by Pawel Dyrduł, lawyer from law office KG Legal Kiełtyka Gładkowski Professional Partnership with its registered office in Krakow
Expenses associated with running a business
Running a business involves the expenses, most commonly in the form of employee salaries. Bearing in mind the increase of these costs and also increase in tax rates, entrepreneurs are undertaking various actions aimed at reducing costs. In short, entrepreneurs are looking for savings in remuneration. However, fearing the loss of qualified staff or a decrease in the efficiency of their work, management boards of companies do not decide to lower wages. What comes with the help to reach their purpose – namely to keep the employees attached – is a financial instrument called notional share.