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Building And Retaining An Effective Team

Building And Retaining An Effective Team

Ted Iwere
May 06, 2025

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IN THIS ISSUE

Building And Retaining An Effective Team
IFC Launches $75m Fund For Distressed SMEs

DEEPTHINK

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Building And Retaining An Effective Team

When you launch a new business, there’s a powerful temptation to do everything yourself. After all, nobody understands your vision better than you do. But this approach can quickly lead to burnout and missed opportunities.

To grow your business successfully, you need to hire employees who complement your skills and help you achieve your vision and goals. The right team members don’t just provide extra hands, they bring fresh perspectives, specialised expertise, and new energy to your venture.

This article explores how to build an effective team, create supportive employment policies, and implement benefit schemes that align your staff with your business goals.

1. Finding The Right People

You can find potential employees through several channels but most commonly via referrals from friends, family, and professional acquaintances, “Help wanted” advertisements with recruitment agencies, newspaper and radio station job listings, and online job websites and social media platforms.

Whichever method you choose, be crystal clear about the kind of person you’re looking for. Know the education, training, and experience your ideal candidate should bring to the job.

This clarity will help you screen and interview prospective employees according to specific selection criteria and your judgment of how they’re likely to perform on factors critical to success in their roles.

2. Setting Employment Policies That Work

Employment policies are rules and procedures that govern the relationship between you and your employees.

Well-designed policies maintain employee morale and boost productivity by creating a culture of fairness in the workplace. They ensure you comply with existing laws while guiding employees in performing their duties.

Using labour laws as your foundation, a business should establish policies in areas such as:

Work Hours and Overtime: Clear guidelines on regular hours, flexible arrangements, and compensation for extra time
Salaries and Wages: Pay scales, review periods, and advancement opportunities
Education and Training: Professional development and skill-building opportunities
Health and Safety: Procedures to ensure a safe working environment
Harassment, Victimisation, and Bullying: Zero-tolerance policies and reporting procedures
Rewards, Benefits, and Expenses: Systems for recognising achievements and reimbursing business costs
Misconduct and Discipline: Fair processes for addressing workplace issues
Use of Company Facilities: Guidelines for vehicles, internet, phone, and other resources
Extra-Curricular Work: Rules about outside employment or freelance activities
Patents and Copyrights: Ownership of intellectual property created during employment
Confidential Information: Protection of business secrets and sensitive data
Whistle Blowing: Procedures for reporting ethical concerns
Drugs and Alcohol: Policies regarding substance use that affects work performance

3. Employee Benefit Schemes That Motivate

Employee benefit schemes are non-salary advantages that you provide to your team.

As an entrepreneur, you should find the right balance between salaries and benefits to motivate employees and maximise their productivity.

Here are some key benefit options to consider:

a. Pension Plans

These retirement savings plans are more than just a nice perk-they’re often legally required. In many countries, companies with three or more employees must participate in national contributory pension schemes. Typically, an employer contributes 10 percent of the employee’s salary while the employee contributes eight percent.

Profit sharing schemes help employees feel invested in the company’s success. These are relatively straightforward to implement – you simply determine that a certain percentage of the business’s net income will be shared among employees according to agreed guidelines. This distribution can happen quarterly, half-yearly, or annually.

When employees know they’ll directly benefit from the company’s growth, they’re more likely to go the extra mile to help the business succeed. This alignment of interests creates a more engaged and committed workforce.

An Employee Share Option Plan (ESOP) allocates some shares of the business to employees, giving them the opportunity to become part-owners. This approach can be particularly effective for attracting, compensating, and retaining key team members who are instrumental to the company’s development.

The plan typically takes the form of agreements between the business and its employees, giving staff the right to buy specified numbers of shares within a certain timeframe at an agreed price. This creates a powerful incentive for employees to contribute to long-term business success.

For best results, consider having the scheme managed by a third party, such as a trustee, who can provide expert advice in structuring it to suit your business and handle the administrative work of managing it.

This article is extracted from The Small Business Handbook. Get a copy to get more practical insights about starting and running your business in Nigeria.

Action Steps

Remember that hiring isn’t just about filling immediate gaps – it’s about building a team that can grow with your business. The people you bring on board today will shape your company culture and capabilities for years to come.

By creating clear policies, offering meaningful benefits, and treating your team as valued partners in your business journey, you’ll build a stronger foundation for sustainable success.

Need clarity on how to get started on building and retaining an effective team for your business success?

Talk to Ted Iwere today!

WHAT’S NEW

Source

IFC Launches $75m Fund For Distressed SMEs

The International Finance Corporation (IFC) and TLG Capital have announced the first close of the TLG Africa Growth Impact Fund II (AGIF II), raising $75 million to support small and medium-sized enterprises (SMEs) in Africa facing financial distress.

The IFC is anchoring the fund through its Distressed Asset Recovery Program (DARP) with a commitment of up to $20 million. This investment is further supported by Swedfund, Norfund, Bpifrance, and the UK Foreign, Commonwealth & Development Office (FCDO) through its Manufacturing Africa initiative.

AGIF II aims to partner with African banks to deliver tailored financing to as many as 20 struggling SMEs across the continent. The goal is to provide these businesses with critical local capital, helping them navigate economic shocks and other challenges while emerging stronger. The fund targets key sectors such as manufacturing, healthcare, agriculture, and telecommunications.

“One in four SME loans in Africa is currently distressed,” said Isha Doshi, co-founder of TLG Capital. “Despite that, Africa’s entrepreneurial drive remains undeterred. AGIF II responds to that resilience with flexible and strategic financing – backed by the expertise of McKinsey, BDO, ESS, and Ndarama Works. It’s a combination of capital and capacity building designed for real impact.”

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