Amid a highly competitive labor market, equity compensation continues to be a critical tool to attract and retain talent, according to findings released today by Morgan Stanley at Work.
The annual Stock Plan Participant Survey shows participant views about the value of stock plan benefits increased year-over-year, with 45% citing stock plan benefits as a reason they joined their company (up 4%) and 60% as a reason they have stayed (up 2%).
“Education and guidance remain key to help both employers and their participants unlock the full potential of their stock plan benefits…”
Scott Whatley, Morgan Stanley at Work
Employees also want more professional guidance. Over two-thirds (67%) of participants said that if their company offered access to financial professionals to help with investing-related questions they would use this benefit, while nearly as many (65%) said they would seize the opportunity to work with a Financial Advisor for comprehensive financial planning if offered through the workplace. In addition, access to financial coaching on topics such as budgeting, credit and debt management ranked third (53%) as a benefit they would be most likely to use.
Respondents reported they were somewhat or very likely to attend education sessions on stock plan benefits (70%), retirement (68%), advanced investing (67%), investing (60%) and general financial wellness (57%).
“Amid a continuing tight labor market, it is not surprising that while equity valuations have decreased, the value participants place on equity compensation has increased and remains a competitive workplace benefit to attract and retain top talent and drive employee satisfaction,” said Scott Whatley, Managing Director and Global Head of Equity Solutions, Morgan Stanley at Work. “Education and guidance remain key to help both employers and their participants unlock the full potential of their stock plan benefits, as there is no better way to reap the full rewards of your plan than by ensuring the participant population fully understands and embraces it.”
The survey also found the majority of participants still do not understand tax implications and other important information about equity compensation plans. More participants say they understand key topics like how taxes impact stock plan benefits (39%, up from 34%), how to maximize the financial benefit from their stock plan benefits (38%, up from 33%), and how to seek guidance (46%, up from 41%), but the majority still struggle—demonstrating that while education efforts have helped, there is still more work to do.
Additional findings from the Second Annual Morgan Stanley at Work Stock Plan Participant study are available here.
SEE ALSO:
• Equity Compensation Plans a Key Weapon in Talent Wars
• ESOP Advocate Touts Retirement Savings Advantages Revealed in New Study
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
