Got Stock? Employees Want Their Share

News Updates

An increasing number of workers are considering the availability of a company stock plan when evaluating a new job opportunity, according to new research by Fidelity Investments.

When asked about the importance of company stock plans as part of their compensation and benefits package:

  •   86 percent of respondents under the age of 40 said they would want their new employer to offer a company stock plan if they changed jobs.
  •   40 percent of overall respondents consider a company stock plan as a “must have” when making a decision to change employers.
  •   37 percent indicated that giving up their company stock plan would make it harder for them to leave their current job.

“In many competitive markets, employees are taking a broader look at the overall benefits offered by new employers,” said Kevin Barry, executive vice president for stock plan services at Fidelity, in a news release. “The availability of a company stock plan can ‘tip the scale’ in a company’s favor when employees are evaluating job opportunities, especially in industries that demand highly skilled or specialized workers.”

Higher Engagement

According to Fidelity’s study, company stock plans can help increase employee loyalty and worker productivity. Over half of employees surveyed (57 percent) indicate that equity compensation plans contribute to their feeling loyal to their employer, and 54 percent indicate their company stock plan “provides an incentive to work harder and be rewarded for the company’s performance.”

In addition, the study found employees in company stock plans are highly engaged in their companies’ performance with 89 percent of respondents knowing the current price of their company stock, and 85 percent knowing the overall value of their stock plan assets and their vesting schedule. 

Stephen Miller, CEBS, is an online editor/manager for SHRM. Follow him on Twitter @SHRMsmiller.

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