Employee Share Ownership
Long term incentive plans are a critical retention and engagement tool. They may be used to reward performance and loyalty and to align individual incentives with corporate goals. They encompass general plans available to all staff and narrower executive schemes offered to only the most senior staff.
Employee share schemes and option plans are commonly used LTIs. The high usage amongst public companies is consistent with easy to value and often highly liquid stock. There has, to date, been relatively little adoption by small business and SME’s. This is undoubtedly because such schemes are complex to set up and run. Some business owners are also reluctant to relinquish ownership and a degree of control.
The Federal Government is committed to helping business realize the advantages of Employee Share Plans. There is a very useful web site at www.workplace.gov.au/eso
We would also recommend to you the Getting Started information packs and, if you can get to them, one of their free information sessions.
Like many things in retention and engagement there are significant challenges and no easy fixes. But if you want to be an Employer of Choice an attractive and effective employee share scheme could become an important aspect of your employment value proposition.
Solutions to skills shortages
Olivier Group are one of a number of experts presenting at a conference in Sydney on 25th -27th September 2006 on Key strategies and practical remedies for the skills shortages. This is a wide ranging conference with speakers from Coles Myer, One Steel, IBM and Integral Energy covering many aspects of attraction and retention. There is also a half day workshop on employment Branding run by Mike Beeley of Euro RSCG Beeley Callan, one of Australia’s top minds in the field of employee communication.
Employee Share Ownership
Long term incentive plans are a critical retention and engagement tool
