Gain a competitive edge in attracting and retaining talent with employee share plans
In 2022, China’s economy is expected to grow, with the Bank of China predicting a 5% overall increase for the year ahead. This, coupled with the “great resignation” phenomenon, is having a significant impact on China’s job market. Companies are working hard to attract and retain the talent they need to keep pace with the growing economy, resulting in a surge in recruitment activity.
Accounts are continuing to emerge indicating that companies are struggling to secure candidates at the end of the recruitment process, with higher dropout rates recorded during sifting and selection due to applicants receiving offers from other organisations mid-recruit. Companies are also realising that power often resides with the employee, with workers in some industries spoilt for choice and, as a result, becoming highly selective.
So how can you ensure your company gains a competitive edge over your sector peers? Read on to discover how an employee share scheme might be the key to attracting and retaining valuable employees at your organisation.
Finding the competitive edge
The criteria that employees utilise to choose the right company for them extends beyond a pay cheque. As people emerge from the pandemic, many are considering a broader range of factors such as company culture, flexible working options, opportunity for growth, amongst others. The employee value proposition is becoming an important aspect that companies need to articulate and demonstrate.
Assisting companies to reinforce their Employee Value Proposition, an Employee Share Plan is a tool that helps companies demonstrate the value they place on their employees and the role they see employees play in the success of the organisation.
Traditionally used to reward executives, Employee Share Plans have evolved in recent years as companies realise they can help retain talent across the entire employee base, and at the same time help companies to stand out from their peers. Computershare has been tracking the uptake in employee share awards across Hong Kong Listed companies over the last nine years, and has found that over 80% of Hong Kong listed companies are now offering an Employee Share Plan.
We have also found a significant increase in the annual investment and allocation of wealth to employees through company share awards. Since 2014, Hong Kong listed companies have increased their annual share allocation by over 70%. We have also seen a 90% increase in the number of employees receiving awards from their employer over the same period. This shows that these offers are being extended far beyond the executive table.
Make an Employee Share Plan work for your business
When deciding to launch an Employee Share Plan, there could be several options to choose from for your employee base. However, for all plan types to be effective, they need to be tailored, reflecting industry best practices and be benchmarked against competitors.
Whether you’re new to the world of Employee Share Plans and need help getting started, managing your plan in house and need more resources, or wishing to outsource but your current partner doesn’t provide support, Computershare is here to help.
We offer solutions to help you deliver the right plan for your business. Reach out to us today to see how an Employee Share Plan can help you attract, retain and support talent in your organisation.
Computershare Plan Managers provides equity plan services to over 250 clients and 500,000 participants across Asia. We have the global expertise and local knowledge to partner with companies to help them create high performing cultures and drive their businesses forward, with confidence.
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