Financial Well-being: The share plan contribution
We uncover the importance of financial well-being and we explore how share plans can be used to improve an individuals’ savings buffer.
Exploring the engagement challenge
Employee engagement has never been so important. In today’s workplace there can be as many as five generations working alongside each other. As each generation presents its own combination of ambitions and circumstances, employers face a mounting challenge to tailor their benefit packages accordingly. With recent research also highlighting the direct link between employee financial well-being and productivity, how can employers strike the right balance between incentivising and rewarding their staff?
Financial well-being – The last taboo of the workplace?
There is no one-size-fits-all strategy when it comes to building a progressive and positive workplace culture, but the well-being of staff is without doubt one of the biggest issues. Those of you who have had a chance to read our report entitled, Financial Well-being: The Last Taboo, will have seen how influential financial security is: employees who reported better financial well-being were more likely to report increased productivity, but employers would be mistaken if they thought the solution lay in salary increases.
In our view, share plan structures represent a more viable long-term solution, because they help to grow the size of an employee’s savings buffer. They also provide an opportunity for employees to participate in share price growth – just like shareholders – and thus can help focus thinking on long-term goals that will improve the overall value of the company.
The share plan contribution
Perhaps not surprisingly, there has been an increase in demand for these share plan benefit packages. In Talking about my Generation, we found that roughly 1/3 of employees across all generations in the workforce ranked share plans as an important benefit. The US seems to have the biggest appetite for them, with recent research there by Fidelity showing that four out of five respondents actively look for an attractive stock plan from their employer.
Here to help
At Barclays Global Stock and Reward Services, we take a holistic view of employee propositions and work with a wide range of organisations to effectively administer their share plans. We hope you find this report useful, and if you want more information, please don’t hesitate to get in touch with us.