Why launch an employee share scheme?

Motivate your employees and align your teams to your business goals.

Employee share schemes:

what, why and how?

Employee share schemes enable your people to become co-owners of your company. They can motivate your employees to reach key business goals.

Why launch an employee share scheme?

A share incentive programme can offer a variety of benefits for you, your employees and potential investors.

Share schemes can be an invaluable part of your recruitment, retention and reward strategy. They can form a vital part of exit planning and securing your legacy. If you’re looking for funding, share schemes can also make your business more attractive to investors.

"Share incentive schemes can be an excellent way to increase buy-in and motivation within your workforce"

Read: options to incentivise employees

Common reasons to set up a share scheme

1. Attract quality talent

By including equity incentives in your rewards package, you can offer an attractive remuneration proposition without having to keep pace with the highest salaries.

2. Improve retention and performance

Studies show that people feel more directly responsible for their performance and tend to be more motivated and productive when they have a stake in the business they work for. This drives loyalty, builds a thriving culture and contributes to longer-term business value.

3. Attract funding

Share schemes better position your business to investors. They evidence a committed management team that has a clear strategic plan for growth.

4. Support exit planning

For any owner/s looking to exit, particularly if through a management buy-out, a share scheme will need to be considered in pre-exit planning in order to secure key people and ultimately increase your enterprise value.