Last year, millions of people around the world quit their jobs, which led to Great resignation. This has put significant pressure on organizations to rethink their work culture, employee experience, and benefits and compensation to attract and retain valuable talent. Next, many polls showed that pay and compensation were one of the main reasons employees paid attention to greener pastures. As a result, many organizations have begun to offer stock options to better retain and attract employees and maintain an advantage over their competitors.
Morgan Stanley at Work recently conducted a study to help employers make better use of equity as a tool to attract employees. One of the findings of the study was that employees value the benefits of stocks, and many believe that compensation in equity is a way to reward their hard work. However, many do not know how to use it properly.
The following are detailed conclusions.
Employees disagree on what makes stock benefits a strong motivator
The survey found that about 77% of respondents were either very satisfied or to some extent satisfied with their company’s share offers, and only about 7% were dissatisfied in some way. However, employees are almost equally divided on what makes stock payments an important motivating factor. As before research company, about 27% of respondents said it gives them a share of the organization’s success, and 26% said it helped them achieve long-term goals. About 23% said it gives them an extra source of income.
Employees do not know how to use benefits at work
Stock benefits are undoubtedly conducive to attracting and retaining talent. About 40% of participants said their current stock plan benefits were the reason they joined the campaign, and 58% said it was the reason they stayed. About 69% also said that in this way the company recognized their hard work and achievements.
However, while employees value stock options, many do not have the confidence or knowledge to work effectively. While about 75% of respondents felt confident that they could access their share plan, only 52% understood how to sell their shares. Also, only 34% understood how to assess the tax impact of their shares, and only 41% knew how to contact someone to resolve their requests. In addition, only about 33% were confident in maximizing the potential for return on equities.
How well employees understand the benefits of their company’s stock
Employees prefer to have information than transactions on stock plan platforms
The study found that most employees prefer to use their stock plan platforms to view information rather than make a deal. About 78% said they check the account balance for stock benefits after logging in. About 56% reviewed details of their plan, such as the share price and the date of receipt of the right. Only 30% said they either sold their shares, exercised options or placed a deal after logging in.
What employees do when they sign in to their account
So what will employees do if they sell their shares or make a deal? About 28% said they contributed income to their current or savings accounts, and 10% said they spent cash. Only 7% said they reinvested it through their brokerage account. However, as mentioned above, about 40% did not make any financial transactions.
Employees want to know about their plans for promotions
The company preliminary study found that about 80% of employees believe that employers should help them understand their financial benefits. They also want to learn more about their stock preferences, retirement savings, advanced investments, education and loan management. Many employees are actively looking for information on their company’s internal network (16%), share plan platform (21%), periodic emails (17%), one-on-one interactions with financial advisors (15%) or webinars (14%).
Offer employees the necessary knowledge
As the dynamics in the workplace began to change, more and more employers are realizing that stock options are a great way to hire and retain high-quality talent. At the same time, given that employees want to learn more about making the most of their share plan, organizations should also make an effort to train their employees. Also, from research we know that some popular platform employees want to find information about their preferences. Therefore, employers should also ensure that the necessary information and assistance will be available to employees on these platforms on demand. By doing this, employers will not only gain good talent, but will also be able to deliver a better experience for employees.
Read more about benefits and compensation
https://www.toolbox.com/hr/benefits-compensation/news/70-employees-unaware-how-to-maximize-stock-benefits/ Nearly 70% of employees don’t know how to maximize their stock preferences: Report