Offering an ESPP can bring significant benefits to your company, but what defines a successful plan? While success can be measured in several ways, below are the five key categories most commonly used to measure it.

Higher participation rates

Companies that create and promote a culture of ownership tend to see higher participation rates. Employees often underestimate the true value of an ESPP. However, when a company fosters an employee-centric culture and educates its workforce about this powerful savings tool, participation rates tend to increase significantly.

Increased cash contributions

According to the 2024 Global Equity Insights Study, employees on average invest 8% of their salary into their share plan. Notably, employees in North America contribute a higher percentage of their salary compared to those in Europe and the rest of the world, with an average investment per employee of $4,049 USD.

Recruitment of talent

Offering a strong benefits package is essential in today’s competitive job market. Including an ESPP as part of that package indicates to top potential employees that your company values and appreciates its staff. By providing a way for employees to build personal financial wealth, often at a discounted rate, recruits are more likely to choose your company as their future employer.

Retention of talent

Employees who participate in their company’s ESPP make a personal financial investment, which has been proven to boost their commitment. As employee-owners, participants tend to demonstrate loyalty through longer tenure. With their personal wealth tied to the company’s success, they are less likely to leave.

Increased employee engagement

An ESPP is broad-based plan accessible to all employees, offering flexibility for participation across all levels. Depending on plan rules, employees may be able to start contributing from their first day on the job. Alternatively, they may have the option to join later if they prefer. With an ESPP, participants choose a contribution amount that fits their budget, making it a manageable financial investment that can be adjusted at any time.

A well-structured and effectively communicated ESPP can deliver great value to both employees and the company as a whole. By fostering a culture of ownership, financial empowerment, and long-term commitment, companies can not only attract top talent but also boost retention and engagement. As employees engage in their own future, they also contribute to the organization’s success. When implemented with flexibility and support, an ESPP becomes a cornerstone of a strong benefits package.

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