Morgan Stanley at Work Insights Spotlight Increasing Focus on Workplace Financial Benefits, With Equity Compensation Key
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Morgan Stanley - Key takeaways show organizations placing greater value on comprehensive financial benefits, including equity solutions
- Voice of the Participant 2024 survey confirms equity compensation remains key driver of loyalty despite knowledge gaps
Underscoring this trend, the largest-ever 2024 Thrive conference in
The conference also introduced a new charitable giving activity, Thrive Gives Back, where attendees hand-crafted over 200 backpacks and reading supplies for donation to local charity HandsOn Greater Phoenix’s Reading Rocks program, which alongside other initiatives provides assistance to regional children in transitional and foster care.
For Thrive highlights, watch here.
Within this widening ecosystem of benefits solutions, research from
- Equity benefits and education drive employee satisfaction and retention: Stock plan benefits are highly sought-after, with 43% of participants saying equity was a reason they joined their company, and once participating, most (76%) stock plan participants are highly satisfied. What’s more, over half (56%) of stock plan participants cite equity benefits as a reason they continue to work for their company, and seven in 10 say equity benefits are important for recognizing their accomplishments at work—underlining how stock plans can contribute to retention as well as a culture of ownership.
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Yet
U.S. participants seek plan education: 61% ofU.S. stock plan participants say they do not understand how to try to maximize the financial benefit from their stock plan, showcasing the need for more comprehensive financial education support. MostU.S. participants say they would be likely to attend sessions on the topics of equity fundamentals (69%), retirement (67%), and advanced investing (64%).2 - Taxes remain a bottleneck: While employees highly value their equity compensation, many still do not understand more nuanced aspects such as taxes. In fact, 62% of stock plan participants say they do not understand the impact of taxes on their stock plan benefit—which can erode the net value of their holdings.
- Companies can close gaps and add value through guidance: Fewer than half of stock plan participants (45%) say they know how to reach someone if they have questions, and less than a third (31%) said they have a personal financial plan in place. This indicates an opportunity to invest in greater employee awareness and expand access to education, support, and guidance to help employees connect their equity to personal financial goals.
“We’ve seen a consistent story in the data over the years: Equity benefits can help drive real outcomes both for companies and their employees, and have taken on a starring role in company culture,” said
“As economic headwinds and tailwinds shift, organizations and their employees continue to tell us that workplace financial benefits are both a strategic priority and an effective tool for pursuing goals, driving results, and remaining competitive,” said
To learn more about Thrive go here.
Additional findings from the Third Annual Morgan Stanley at Work Stock Plan Participant study are available here.
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State of the Workplace Study 2024 |
Morgan Stanley at Work -
Non-
U.S. participants excluded from participant education plan numbers. -
Statistics refer to equity compensation administration services for Shareworks and Equity Edge Online®. S&P 500® Companies Represented includes companies for which
Morgan Stanley at Work provides equity compensation solutions as ofMarch 2023 .
Methodology: The data from the
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