Stock-based compensation for an increasingly diverse workforce

Key takeaways

1. Personal objectives matter: The demand for stock-based compensation (SBC) is high among a diverse workforce of early-career¹ employees. But understanding individual narratives can be crucial when adding plan flexibility to benefit all participants.
2. A diverse workforce embraces SBC differently: Demographic identities play a substantial role in determining which employees embrace SBC- and at what point in their career journey. Employers may improve their ability to attract and retain diverse talent by adapting to these nuanced interests.
3. Wealth accumulation is a top priority: Wealth accumulation is the primary objective for many respondents. Aligning SBC plans with this priority can be helpful for enhancing employee satisfaction and retention.
4. Communication challenges persist: Getting the word out about SBC programs via traditional methods can fall short. Respondents often rely on their personal networks for guidance, making it challenging for employers to manage the message effectively. Organizations need to embrace innovative new channels to not only engage a diverse workforce but to underscore the intrinsic value SBC brings to the table.
5. Informed plan design can improve returns: By reassessing SBC plan designs and administration through the lens of today's diversifying workforce, employers can enhance the employee value proposition and improve the returns on their SBC investment.