When companies develop benefit packages to attract top talent and remain competitive, they consider the right mix of rewards. These days, offering benefits like flexible working, discounts on private health insurance and paid parental leave are almost expected, especially among larger, well-established companies.
As a human resources or employee reward leader, you need a way to develop effective programs that attract and engage the employees you need now — and in the future — to support every aspect of your talent strategy. A broad-based contributory plan can help you do that.
If your company doesn't currently have a broad-based contributory plan in place, you should know there are good reasons to offer one. Here are five reasons why.
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Improve employee performance
We conducted a study in conjunction with The University of Melbourne to explore contributory plan participation. We found that those who participate in an ESPP are more engaged and interested in company performance and are more likely to stay with the company. In other words, offering a contributory plan can lead to a more engaged, more valuable workforce.
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Attract and recruit top talent
Employee benefits such as flexible working and discounts on private health insurance are baseline benefits that may do little to help you stand out against the competition. Offering a contributory plan can make your company more attractive to prospective employees and be an important tool to deliver on your people priorities by helping you land top recruits, especially if you choose to offer a matching component.
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Create an employee ownership culture
Implementing a broad-based contributory plan offers a cost-effective way for employees to purchase shares in your company. When employees are also owners, they have a greater stake in the success of your business, which can be a powerful motivator and helps to reduce turnover.
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Improve employee financial literacy
Having a broad-based contributory plan can provide opportunities to promote financial literacy among your employees. As they learn about investing and share ownership, they become more financially savvy, which can benefit them both personally and professionally.
Increase employee engagement globally
Broad-based contributory plans are one of the few cross-border employee benefits, meaning there are opportunities to increase engagement and loyalty and by optimising communications and offering an enhanced digital experience to all employees, regardless of their geographical location.