Tags: Fidelity | stock | plan | employee

Fidelity Survey: Company Stock Plans Becoming More Powerful Influence on Workers

By    |   Monday, 07 July 2014 03:29 PM EDT

Company stock plans are becoming an increasingly important perk, especially among young workers.

In fact, 10 percent of the 2,116 stock plan participants younger than 40 who participated in a Fidelity survey ranked their company stock plan as their most valued benefit — more important than their healthcare plan, 401(k) or even child care benefits.

And nearly one-third of the participants cited their company stock plan as one of the most important benefits.

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"In many competitive markets, employees are taking a broader look at the overall benefits offered by new employers," Kevin Barry, executive vice president of Stock Plan Services at Fidelity, said in a statement.

"The availability of a company stock plan can 'tip the scale' in a company's favor when employees are evaluating job opportunities, especially in fields that demand highly skilled or specialized workers. Employers who recognize this fact will be at the forefront of the 'war for talent' and well-positioned to attract and retain the best employees for their business needs," Barry added.

Companies that offer stock plans are likely to have more loyal and productive workers, Fidelity found.

Specifically, 54 percent of the survey participants claimed a stock plan "provides an incentive to work harder and be rewarded for the company's performance," and 57 percent said a company stock plan contributes to their feelings of loyalty to their employer.

Not only can a stock plan influence workers' attitudes about their current employers, but it can help companies retain their employees, the survey noted.

More than one-third of the Fidelity survey participants said giving up their stock plan would make it more difficult to leave their current job.

And 40 percent considered a company stock plan as a "must have" if they were to change employers.

In addition, 86 percent of those surveyed said they would want their new employer to offer a company stock plan if they changed jobs.

But why are company stock plans so hot?

For one thing, employees can use them as supplemental savings vehicles that can be easily accessed and used for non-retirement expenses, without any fees or IRS penalties, Fidelity noted.

In an environment where many Americans lack adequate savings, the growing appetite for company stock is a good thing, as it can "represent significant wealth accumulation," Emily Cervino, vice president of Stock Plan Services for Fidelity Investments told USA Today.

Company stock is also an effective way to align employee interest with shareholder interests, she said.

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StreetTalk
Company stock plans are becoming an increasingly important perk, especially among young workers.
Fidelity, stock, plan, employee
429
2014-29-07
Monday, 07 July 2014 03:29 PM
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