Morgan Stanley at Work Unveils Equity Compensation Findings From Inaugural State of the Workplace Financial Benefits Study

• HR executives say equity compensation is an essential benefit for employees to meet goals and deepen loyalty
• Nearly nine in 10 employees agree they would be more likely to stay with their company if it emphasized equity compensation

Morgan Stanley at Work released the latest findings from its inaugural State of the Workplace Financial Benefits Study focused on the financial benefits, perceptions and role of equity compensation among employers and employees in the workplace.

“gives me a stake in the success of the company”

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The study found the pandemic has changed the way employees and employers alike view their workplace financial benefits, with an increased focus on offerings like equity compensation. The rising importance of equity compensation in the workplace serves as an essential benefit to not only help employees meet their long-term financial goals, but also to increase employee motivation and loyalty. This provides companies with a unique opportunity to attract and retain talent in a highly competitive labor market. Among the notable findings from the study include:

• Employers and employees agree that equity compensation is a powerful motivator. 93% of HR executives and 75% of employees agree that equity compensation and stock ownership is the most effective way to motivate employees.
• Equity compensation correlates with the perception of best-in-class benefits. Employers believe that equity compensation is a driving factor for “best in class” benefits. Nearly nine in 10 (89%) HR executives at companies that offer equity compensation strongly or completely agree their company provides “best in class” benefits, vs. only 56% at companies that do not offer equity.

• Employees are divided on the exact role equity compensation plays for employees. Employees diverge over what makes equity compensation a strong motivator, with the top three choices being “gives me a stake in the success of the company” at 27%, “helps meet long term goals” at 26%, and “provides an additional source of income” in third with 23%.

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“From the conversations we are having with our clients it appears that equity compensation will only continue to grow as a significant workplace benefit,” said Scott Whatley, Managing Director & Global Head of Equity Solutions, Morgan Stanley at Work. “Our study shows equity compensation is a powerful motivator that can help employees meet their financial goals, while helping employers attract and retain talent. As this benefit continues to be sought after by employees at all levels, the need to effectively scale it becomes critical. Further, for companies to optimize this offering, they must be mindful of awareness and comprehension gaps among employees, and provide them with meaningful communication and educational tools so they can maximize the advantages of their equity.”

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