| Mark Saliba
With no clear end in sight for the COVID-19 pandemic and the profound implications it has had on many businesses, the top priorities for companies now are employee retention and the management of short-term cash flow. It is essential for businesses to consider alternative ways to retain their staff as they continue to struggle with paying full wages to their employees and the JobKeeper payment ending 28 March 2021 (more details can be found on ATO’s JobKeeper extension announcement).
Offered as an incentive and allowing employees to share the growth and success of the business, Employee Share Schemes are a versatile and valuable way to attract, retain and motivate employees. Additionally, utilising employee equity can be a great strategy to help improve a business’s cash flow.
There are many benefits to offering employee equity, including:
As the issues of the COVID-19 pandemic are felt across the economy, many companies are considering to utilise Employee Equity Plans in lieu of salary payments, allowing employee retention and an immediate reduction of the financial impact on their business.
3 tips to consider when introducing employee equity in lieu of salary payments:
With over 400 Employee Equity Plans under management, BoardRoom has extensive experience in designing, implementing, and managing Employee Equity Plans. If you would like to find out how BoardRoom can help, please do not hesitate to contact us.
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