Equity Compensation Key Driver of Employee Retention and Engagement, Study Finds
While employers cite equity as the top driver of employee engagement and retention, opportunities remain to help employees better understand the financial opportunities available to them through equity ownership.
- While employers cite equity as the top driver of employee engagement and retention, opportunities remain to help employees better understand the financial opportunities available to them through equity ownership.
- Key findings from the study include:
Equity compensation is growing in popularity across the board: More HR leaders report that their companies (76%) are offering some form of equity compensation benefits—up four percentage points year-over-year and a 12-point increase since 2021 (65%). - Equity compensation retains MVP status for driving employee engagement: Nearly all (95%) HR leaders say equity compensation is the most effective way to keep employees motivated and engaged, which has remained virtually unchanged year over year (97% in 2023, 95% in 2022, and 93% in 2021)—and four in five employees agree (80%).
- This suggests more can be done to help employees understand and integrate their equity compensation into a comprehensive financial approach.