Stock plans and advisor access key in attracting, keeping talent: Survey

Over two-thirds of respondents in a Morgan Stanley at Work survey would access the help of financial professionals with investing questions if it were available.

Equity compensation is growing more popular as a way to attract and retain talent.

According to Morgan Stanley at Work’s recently released Stock Plan Participant Survey, the importance of stock plan benefits increased year-over-year, with 45% of respondents citing equity compensation as a reason they joined their company, up 4 percentage points from a year ago, and 60% saying it’s a reason they’ve stayed, up from 58% in 2022.

Professional guidance and education also proved to be highly sought-after employee incentives. The study showed more than two-thirds (67%) of respondents said that if their company offered access to financial professionals to help with investing questions, they would use this benefit, while nearly as many (65%) said they would work with a financial advisor on comprehensive financial planning if that were offered through the workplace.

The report also revealed that access to financial coaching on topics such as budgeting, credit and debt management ranked third (53%) as a benefit they would be most likely to use.

“While employees appreciate and often stay at companies longer because of equity compensation, employers can do even more,” said Kyle Thompson, senior vice president and wealth advisor at SageView Advisory Group. “Offering education around how this benefit fits into their personal situation, especially the tax implications, is vital to long-term retention of employees.”

“Amid a continuing tight labor market, it is not surprising that while equity valuations have decreased, the value participants place on equity compensation has increased and remains a competitive workplace benefit to attract and retain top talent and drive employee satisfaction,” Scott Whatley, managing director and global head of equity solutions at Morgan Stanley at Work, said in a statement.

“Education and guidance remain key to help both employers and their participants unlock the full potential of their stock plan benefits, as there is no better way to reap the full rewards of your plan than by ensuring the participant population fully understands and embraces it,” Whatley added.

On the topic of education, the survey showed that the majority of respondents still don’t understand a number of the tax implications related to their compensation. That said, participants reported that they were somewhat or very likely to attend education sessions on stock plan benefits (70%), retirement (68%), advanced investing (67%), investing (60%) and general financial wellness (57%).