When companies develop benefit packages to attract top talent and remain competitive, they have to consider the right mix of rewards that employees want most. Companies need a way to develop effective programs that attract and engage the employees you need now, and in the future, and to support every aspect of your talent strategy.
An Employee Share Purchase Plan (ESPP) can help you do that. Here are eight reasons why you should consider offering an ESPP.
Create an ownership culture in your company
Allow employees to become a shareholder of the company and motivate them to have a greater stake in company’s success.
Attract and recruit top talent
Offering an ESPP can make your company more attractive, help you land top recruits and deliver on your people priorities.
Improved employee performance
Our research confirms that employees are more likely to develop a sense of ownership toward their organization, meaning that their goals and objectives are aligned with those of the organization, as their percentage of total wealth held in employer shares increases.
Broad-based, cross-border benefit
ESPP can be made available to all employees, around the globe.
Regular payroll deductions from ESPP participating employees provides a steady cash flow to the company.
Lower expense than other equity compensation
ESPP have a lower valuation than other forms of equity compensation in general.
Build employee wealth
ESPPs can help employees to build wealth through dollar cost averaging investment strategies via regular automatic payroll deductions and share purchases.
Substitute for another (more expensive) employee benefit
Offering an ESPP could be a more cost-effective benefit than other common cost prohibitive benefits.
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Ready to start your own ESPP?
Computershare manages employee stock purchase plans for hundreds of companies all around the world. To learn more about our services, fill out the form below to schedule a complimentary demonstration with one of our ESPP experts.