Employee Stock Purchase Plan (ESPP) administrators can often find themselves scratching their heads: \u00a0Why is my ESPP enrollment rate underachieving? In fact, according to a recent survey, the majority of respondents found that they had a lower than expected enrollment rate.<\/p>\n
Which is strange, right? ESPPs are a great benefit for employees as they help to build wealth and achieve personal goals, so there must be a reason for low uptake rates.<\/p>\n
There are so many ESPP benefits to employers \u2013 increased recruitment and retention, higher job satisfaction and motivation, and tax-efficient earnings. But let\u2019s focus on the benefits to your staff here.<\/p>\n
To motivate your employees to participate in an ESPP, you first need to understand the key motivators for them. Based on a recent survey in 2021, growing wealth and saving for retirement are the key motivators for US shareholders to buy their company\u2019s shares.<\/p>\n
Top 2 reasons for why they chose to buy shares :<\/strong> What\u2019s next? \t\tIt goes without saying that slick communication is key. You can achieve high participation rates with a robust comms plan that discusses employee equity ownership benefits and provides thorough financial education regardless of the\u00a0ESPP design<\/a>.\t\t<\/p>\n \n\t\t\t\t\u201dGenerally, companies need to do more on promotion, communication and education of the plan, especially in sectors where the employees may not be tech savvy, such as manufacturing.\u201d\t\t\t<\/p>\n
To grow my wealth: 68%
To save for retirement: 50%<\/p>\n
It\u2019s time to build an employee-driven communications plan around how an ESPP can help them achieve their financial goals, thus increasing your ESPP enrollment rates.<\/p>\n6 actionable ideas to communicate your ESPP to boost enrollment<\/b><\/h2>\n
\n