When companies develop benefit packages to attract top talent and remain competitive, they consider the right mix of rewards. These days, offering benefits like flexible working, discounts on private health insurance and paid parental leave are almost expected, especially among larger, well-established companies.
As a human resources or employee reward leader, you need a way to develop effective programs that attract and engage the employees you need now — and in the future — to support every aspect of your talent strategy. An employee share purchase plan (ESPP) can help you do that.
If your company doesn't currently have an ESPP in place, you should know there are good reasons to offer one. Here are five reasons why.
Improve employee performance
We conducted a study in conjunction with The University of Melbourne to explore employee share plan participation. We found that those who participate in an ESPP are more engaged and interested in company performance and are more likely to stay with the company. In other words, offering an ESPP can lead to a more engaged, more valuable workforce.
Attract and recruit top talent
Employee benefits such as flexible working and discounts on private health insurance are baseline benefits that may do little to help you stand out against the competition. Offering an ESPP can make your company more attractive to prospective employees, especially if you choose to offer a matching component. An ESPP is an important tool in helping you land top recruits and deliver on your people priorities.
Create an employee ownership culture
Implementing an ESPP offers a cost-effective way for employees to purchase shares in your company. When employees are also owners, they have a greater stake in the success of your business, which can be a powerful motivator and helps to reduce turnover.
Improve employee financial literacy
Having an ESPP can provide opportunities to promote financial literacy among your employees. As they learn about investing and share ownership, they become more financially savvy, which can benefit them both personally and professionally.
Increase employee engagement globally
ESPPs are one of the few cross-border employee benefits, meaning there are opportunities to increase engagement and loyalty and by optimising communications and offering an enhanced digital experience to all employees, regardless of their geographical location.