Why & How to Give Your Key Employees Phantom Equity (w/ Jenna Toon of Reins)

Guest:
Jenna Toon – Founding Customer Success Manager, Reins

Guest Links:
Website: https://myreins.com

This episode breaks down when, why, and how HVAC and plumbing companies should use phantom equity to retain top talent without giving up real ownership. It explains why equity-based incentives are gaining momentum in home services, how rising competition and private equity have changed retention expectations, and why traditional bonuses often fail to create true ownership behavior. The episode walks through what phantom equity actually is, how it differs from traditional equity, and why it removes the biggest risks that scare business owners, including voting rights, financial transparency, and long-term liability. It explores who should receive phantom equity, why tenure alone is a poor qualifier, and how growth-driving roles create far more leverage than years served. The discussion dives into when companies should implement equity plans, emphasizing proactive retention over reactionary fixes, and why smaller companies often benefit the most by introducing equity earlier than expected. It also covers how visibility and real-time valuation change employee behavior, why making equity tangible increases buy-in, and how tracking value over time creates long-term alignment. Finally, the episode outlines how structured phantom equity plans eliminate legal complexity, reduce decision fatigue, protect owners, and create a merit-based culture that attracts and retains high performers in an increasingly competitive labor market.