An employee share scheme involves giving some or all your employees a share in the company. There are several advantages to implementing an employee share scheme and below are the top seven reasons.
- Employees will have a shared common goal
With the constant coming and going of projects, it can sometimes be hard for your employees to focus on a long-term goal. By implementing a share scheme, your entire workforce will share a common goal which will keep them motivated for their entire journey in your company.
- Business decisions will be understood by your workforce
With every company there are highs and lows. During the low periods, staff can often become disengaged and unmotivated. This is especially true when they are not tied directly to the success of the business. However, when employees become shareholders, they become more understanding of the decisions that need to be made and more supportive of them too.
- Employees will make better decisions for the company
By giving employees a share in the company, you give them an incentive to work hard. They will genuinely care about the success of the business which will make them more motivated. They will take proper care and responsibility when making decisions about the company. They will ask themselves ‘what is best for the company’ and act on it.
- It is a new way to recognize and reward staff
Through recognition and rewards, you are better able to incentivize your workforce. You’ll show them that their work is valued. An employee share scheme is the best way to achieve this. They will be encouraged to get involved in projects. By rewarding them with more ownership of the company, they will not only want to work hard to gain the reward, they will also continue to work hard as they will have a direct link to the success of the company.
- Employees will understand the company vision
By beginning an employee share scheme, you will create an environment where employees can talk to management about the company’s future. Employees with a share in the business will have a strong desire to understand and implement the long-term goals of the company, what role they play and what the future holds.
- Ability to retain your best staff
Employee share schemes give employees a stronger connection to the business and therefore ensure that your star performers are less likely to leave. The loss of a good employee can have a big impact on the business, but if they have a share in the company, they have an incentive to stay and help your business continue to succeed.
- Attract good staff
Your business can attract top talent with an employee share scheme as it shows that you respect what your staff brings to the business by literally giving them a part of it. It also shows new employees that they will directly benefit from the hard work they put into the company as they help it to grow.
