Despite lockdowns (plural, unfortunately) preventing people from spending their cash on their usual dalliances, many employees have been concerned about the money they are earning.
The pandemic has seen employees reconsider benefits and the financial compensation their work offers. Moreover, those who are not happy with their benefits have been happy to leave their employer.
Morgan Stanley at Work has investigated to what extent this has been the case in their inaugural State of the Workplace Financial Benefits Study.
In order to get an accurate picture of the needs and wants of employees, the study spoke to 1,000 US employees and 600 HR executives.
Morgan Stanley at Work noted that equity compensation is increasingly important for employees.
In fact, the research found that equity is an essential benefit that not only helps employees meet their long-term financial goals, but also increases employee motivation and loyalty.
The survey noted that 93% of HR executives and 75% of employees believe that equity compensation and stock ownership is the best and most effective way to motivate staff.
Additionally, benefits and equity compensation are deeply intertwined; 89% of HR executives who offer equity say that their company provides “best in class” benefits. This figure is dramatically less (56%) at companies that do not offer equity.
In terms of how equity motivates employees, there is a notable divide. 27% of correspondents believe it “gives me a stake in the success of the company”, 26% said it “helps meet long term goals”, and 23% cited the fact that it provides an additional source of income.
The desire for an additional source of income undoubtedly correlates with another finding of the study that COVID-19 forced nearly three in five US employees to reduce contributions to savings accounts.
Scott Whatley, the managing director and global head of equity solutions at Morgan Stanley at Work, commented on the findings: “From the conversations we are having with our clients it appears that equity compensation will only continue to grow as a significant workplace benefit.”
“Our study shows equity compensation is a powerful motivator that can help employees meet their financial goals, while helping employers attract and retain talent.”
“As this benefit continues to be sought after by employees at all levels, the need to effectively scale it becomes critical.
“Further, for companies to optimize this offering, they must be mindful of awareness and comprehension gaps among employees, and provide them with meaningful communication and educational tools so they can maximize the advantages of their equity.”
Of course, not every company can offer equity. However, those who can, may consider it after the results of this study.
Particularly, as the ‘Great Resignation‘ continues and staff retention, as well as sourcing, remains problematic.
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