Employees that include company stock in their overall financial planning are more loyal and have a higher output level, according to new research conducted in the U.S by Fidelity Investments Inc.
It found these employees were twice as likely to work harder, three times as likely to feel loyalty to their employer and three times as likely to include the monetary value of stock plan benefits when calculating compensation from their employer. More than half (59 per cent) felt more confident about their ability to make good decisions when it comes to their company’s plan and 61 per cent were likely to value their plan highly and were much more likely to recognize the tangible value of their company stock awards. In addition, these employees were three times as likely to say they have improved overall financial confidence.
In addition, 55 per cent of these respondents include the monetary value of stock plan benefits when calculating their compensation from their employer and 57 per cent said they incorporated stock into their financial planning after their stock award vested. Other top factors included setting a specific financial or savings goal (32 per cent) or receiving a new stock award (31 per cent).
“Organizations continue to offer company stock awards as a way to attract and retain top talent, as well as to reward top performers,” said Mark Haggerty, head of stock plan services at Fidelity Investments, in a press release. “However, including company stock in financial planning is key to unlocking the real value of these awards — not only will employees have a greater appreciation of their company stock plan, but they’ll understand how company stock awards can contribute to their overall financial well-being.”