People are what make the organisation, right? So, are you really making sure that the employees feel that their input is being valued?

When employees feel a sense of ownership, they are more engaged, motivated, and aligned with the company’s long-term success. Investors and proxy advisors also see the role of fostering employee ownership and attracting talent as central. One way how companies foster this connection is through Employee Share Plans.

As one employee expresses it:

“Personally, I have never been a shareholder or a share buyer before, so I would call my self a total share buyer/owner novice. I like that all information of the ESSP is simple and understandable even for me and we are happy to know that the Company is taking care of us and our future.”

Factory worker, Poland

A proven model— now expanding in both listed and unlisted companies

Interest in Employee Share Plans is rapidly increasing. As new generations enter the workforce and remote work and technology reshapes our ways of working, companies are finding new ways to create engagement, encourage innovation and strengthen long-term retention. This does not only apply to listed companies, but unlisted companies are increasingly implementing broad-based equity plans as well, inviting all the employees along to share the company’s growth journey.

Research shows …

When we look at data from the Allshares employee participant portal, we see a high participation rate amongst the companies that offer Employee Savings Share Plans to their employees. Our data also shows a positive impact from an ESG perspective as companies offer an inclusive and accessible way to invest.

Our data shows that a considerably larger portion of women chose to invest in Employee Share Plans than they would in the general stock market, and that younger generations show an increased interest toward investing, making these plans an excellent tool to promote inclusive financial well-being. Thus, Employee Share Plans could be considered as a great way to encourage and inform employees, who might not do so otherwise, on how and why to invest in shares. ‍

Our data shows that a typical employee invests between €100-150 per month into Employee Share Plans, steadily building financial security while benefiting from possible matching shares and discounts, that reduce the risk of participating. Although investment amounts vary—often increasing with higher salary levels—participants' savings can become considerable within justa few years. Gradual saving also mitigates volatility risk, offering employees a structured and smart way to engage with the stock market.

Employee Share Plans in a global context

In terms of complexity, Employee Share Plans successfully work globally across all regions and industries, including all employee groups from white-collar to blue-collar. Improvements in technology ensure that administrative factors do not prevent the implementation of such Plans.

To summarize, by offering your employees the opportunity to invest in your company Share Plan, you help build a strong foundation for long-term success and sustainability: it is a win-win!

We would love to tell you more about these plans and alternative ways of structuring and running them. If you’re interested in learning more about Employee Share Plans, please do not hesitate to contact Kristina Wichmann, MD Incentives, at Kristina.wichmann@allshares.com

For questions concerning globalimplementation specifically, please reach out to Pirkko Malinen, MDincentives, Head of legal councel, at Pirkko.malinen@allshares.com

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