Employees Should Share in Success

Article excerpt

Share options can help motivate employees, an Ernst & Young 'Growing Talent' conference has heard.

But leading experts clashed on just how best they should be handled.

Richard Burston, senior consultant at E&Y's global employment solutions practice, said attracting, retaining and motivating employees was vital for today's businesses.

There were many ways in which companies could win the war for talent, particularly by offering employees share options.

These, he believes, can be a very valuable motivational tool in rewarding employees in a tax efficient manner.

'However, there is a growing debate about whether shares should be distributed equally amongst all employees within a firm or whether they should be given primarily to those employees who have the most impact on the share price,' said Mr Burston.

Chris Eyles of WebAngel, an e-business accelerator that advises and resources developing e-commerce companies, said: 'Amongst other reasons, some early stage companies support giving out shares to all employees to ensure that their staff feel part of a team, rather than for the reason that they will contribute to the success of the business. …