Why employers should investigate global employee share plans as a benefit in the ‘new normal’
Motivated to succeed
A share plan cohesively binds the workforce to company objectives by ensuring that the employees are financially motivated to ensure the company succeeds.
Where employee values are aligned with the core values of the company, there is a sense of community and collective created. As employees drifted to the four corners of the world to isolate and work remotely, employees were still able to share in the purpose and vision of the company despite being separated from their colleagues. They are part of the bigger picture and their individual contribution directly counts towards the success of the business.
The workforce is motivated by the collective success, which fosters a community wellbeing environment, with employees reaching out to one another to make sure they are well and safe in both home life and professional life.
Equality of success
Employee share schemes provide a transparent employee benefit with a simple and clear rationale. There is an equality to the success of the company, in that all scheme members benefit when the company performs well as the financial success and benefits are distributed further than the C-suite. This creates an open environment where everyone works to achieve the same, equal goal regardless of where they work in the world.
Over the past few months, this has helped to cement the idea that ‘everyone is in it together’ and some companies have opted to go further, with C-suite slashing bonuses and forgoing dividends as they recognise the hardship their employees may be facing. Employee share schemes provide a global means of rewarding employees in a standardised and transparent way.
Promoting financial wellbeing
With complex scheme rules and regulations, share plans in tandem with financial education is essential to making sure employees understand the value of their employee benefits, and are supported with understanding any tax liabilities. Inevitably, share plans follow into a wider conversation around financial wellbeing and money management, as employees can learn how money released from a share plan can be saved tax-efficiently to meet their life goals.
Supporting employees’ financial wellbeing, especially in the current climate, is important, with financial markets dipping and rumblings of a global recession, there is a palpable nervousness. Using a share scheme to open a wider conversation about money and savings supports both financial and mental wellbeing during this period where financial instability is a concern for many individuals across the globe. Through financial education, employees understand the value of their share plan and how best to manage their money to take control of their financial future.
Overall, global employee share schemes are a great opportunity for an employee to share in the success of the company. They create a sense of community, foster an environment of equality and spark financial wellbeing discussions.
This article is provided by AAG.
In partnership with AAG Financial Education
At AAG Financial Education we provide your employees with the knowledge of their financial future.