Companies that invest in equity award programs generally want to encourage high employee participation. Fostering engagement, however, is sometimes easier said than done.
In order to discover what was top of mind for industry leaders, Rodney Bolden, Head of Industry Engagement and Learning at Morgan Stanley at Work connected with Christine Zwerling, Head of Global Stock Administration at Asana, Melissa Bukuru, Associate Director at Ownership Works and Matt Bahl, Vice President, Workplace Market Lead at Financial Health Network to get an inside look at ways to deepen employee engagement, drive program participation and enhance workplace financial wellbeing. Here’s an overview of some of the strategies they discussed:
- Start small. Incremental changes can lead to powerful outcomes. Organizations may recognize the importance of providing employees with financial education but may need to adjust in order to meet employees where they are in their financial journey. “Employees who lack an understanding of basic budgeting or tax management often struggle to understand how equity compensation works and how it could benefit them,” explains Christine Zwerling. “That’s why it’s important to assess your employee’s general financial awareness when structuring these programs and offer education tailored to their particular needs.”
- Think holistically. Think broadly to make meaningful changes. “Early findings from Ownership Works’ financial wellness survey suggest a clear link between employees’ emergency savings and their ability to think like owners. Without financial stability, ownership isn’t top of mind. Investing in financial wellness ensures employees have the mental bandwidth to fully engage in the program,” says Melissa Bukuru. By addressing employees' financial stress, financial wellness programs may help to drive greater equity plan participation.
- Gather insights. To enhance program engagement, take time to understand and respond to employee needs. For instance, employees who frequently act as caregivers may struggle with work/life balance and, as a result, can end up neglecting their personal care. This could influence the types of benefits they need in the future. Frontline managers are also often aware of the real-world issues employees may be facing, so it can be helpful to survey employees to determine if resources are addressing their unique needs. This is important since employees generally participate in equity compensation programs only once they feel their basic needs are being met.
- Measure progress. To continue driving change, measurement is an important stepping stone. “Change can be made by benchmarking your financial wellness programs against those of other organizations, conducting surveys to measure program utilization and assessing which programs are driving tangible business outcomes,” according to Matt Bahl. “If you’re struggling with low equity plan participation, it may be an indicator that the status quo isn’t working.” Measuring outcomes may help you pinpoint the interventions most likely to deliver the greatest impact, equipping you to deepen engagement by enhancing workplace financial wellbeing.
Combining equity awards with financial wellbeing can deliver powerful outcomes for employees and help companies drive equity plan engagement, particularly if programs reach people where they are and deliver the resources they need when they need them. Applying these practices may help enhance employee engagement and give support to employees as they pursue their financial goals.
