Finding trustworthy tradies is hard.
Keeping them is even harder.
Most trade business owners try to solve retention problems with pay rises, bonuses, or promises of “one day.”
But as Matt Jones explores in Episode 483 of The Site Shed Podcast, short-term fixes rarely create long-term loyalty.
Chris Buttenham, co-founder and CEO of Reins, joins Matt in this episode to discuss a smarter strategy for retaining key staff: phantom equity.
This conversation is especially relevant for tradies who:
Are tired of losing good people
Want their team to think long-term
Are considering succession or exit (even years away)
What Is Phantom Equity (In Plain English)?
Phantom equity gives employees the financial upside of ownership without actually owning it.
There are no voting rights.
No control given away.
No liability for staff.
As Chris explains in the episode:
“What it is is in layman’s terms, a fancy cash bonus that gets paid when the business sells to that stakeholder.”
Instead of giving away real shares, tradie business owners can reward loyalty and performance with a structured incentive that pays out when the business hits specific milestones (most commonly at sale).
Why Phantom Equity Works Better Than Pay Raises
In the short term, pay rises may feel good, but they quickly become the new norm.
Phantom Equity changes behaviour because:
Encourages long-term thinking
Aligns staff with business growth
Rewards loyalty and performance
Supports retention without risk
Chris puts it simply:
“The beautiful thing about long-term incentives is when you give someone equity-based compensation, not salary-based compensation, they’re thinking more long-term.”
When employees have a stake in the outcome, they make better decisions, not only for the present but also for the business’s future.
How Phantom Equity Protects the Business Owner
One of the biggest fears tradie business owners have with equity is loss of control.
Phantom equity avoids this by allowing owners to:
Set vesting schedules
Tie incentives to performance KPIs
Include forfeiture clauses if staff leave
Delay payouts until sale or agreed milestones
There are no voting rights, no shareholder headaches, and no unintended obligations.
As Chris explains, phantom equity gives employees the upside of ownership without the downsides for the business owner.
Equity vs Profit Share: What’s the Difference?
This episode also breaks down a common confusion.
Profit share = short-term, usually monthly or quarterly
Phantom equity = long-term, often tied to exit
They’re not competitors; they’re complements.
Profit share rewards today’s performance.
Phantom equity rewards commitment to the future.
Used together, they help tradie businesses retain key people while building real enterprise value.
Transparency Matters More Than Complexity
One key takeaway from the episode is that overcomplicated incentive plans fail.
If staff don’t understand:
How the numbers work
What success looks like
How they influence outcomes
…then the incentive won’t drive behaviour.
Chris sums it up clearly:
“Simple is often best and actually the most effective to get what you’re looking to get out of these incentives.”
For tradie businesses, clarity beats cleverness every time.
The Bigger Picture: Building a Business That Lasts
Phantom equity isn’t just about retention.
It’s about:
Building a business that doesn’t rely on you
Creating real exit options
Aligning your team with growth and value
Turning workers into long-term thinkers
As Matt reinforces throughout the episode, profit alone doesn’t make a business valuable.
Systems, structure, and consistency do.
📚 Resources from this Episode
Get in touch with Chris Buttenham:
Want to unlock your business's hidden potential?
Ready to build a smarter, more scalable business?
👉 Book a free strategy call – let’s design your digital operations roadmap and get you moving faster.
