Workers open to company share schemes, but many lack knowledge

A growing number of Kiwi workers would be open to taking shares or stock options as part of their remuneration, a new survey shows.

The YouGov survey, commissioned by online share platform Sharesies, found half of those surveyed stated they were more open to alternative forms of remuneration than they were five years ago.

However a lack of knowledge about company share schemes could be holding workers back from using them to build long-term wealth.

While 80 percent of respondents would consider taking at least part of their remuneration as shares, nearly two-thirds admitted they were unfamiliar with employee share schemes.

Sharesies Business general manager Susannah Batley said the findings suggested workers were interested in joining the schemes but needed to know more about them.

"There is appetite for them, it's just about education and how we develop engaging experiences," Batley said.

Employee share schemes, where workers are offered equity in a company as part of their remuneration, are more common for companies listed on the NZX, particularly for executive-level workers.

However private companies also offer them, and more listed companies were also starting to offer broad-based, company-wide share scheme options, Batley said.

He said it was important the schemes were made available, with the 56 percent of employees in the survey saying their take-home pay was not enough to pay bills and build long-term wealth.

Batley believed share schemes were an important way of ensuring the benefits of strong capital markets were enjoyed by workers, not just company or property owners.

"In the capital markets we have seen a lot of wealth created over the last few decades, but really most of it has gone to owners, whether that is share owners, business owners or property owners, and much less of that wealth to employees as a wage."

Young workers seemed more enthusiastic about share schemes, with 18 percent of Gen Z workers who received a pay increase in the last 12 months saying they gained shares for their efforts.

That is compared with just 7 percent of millennials and 3 percent of Gen X and Baby Boomers.

"There is quite an interesting generational difference, where there is more openness around equity and more familiarity with employee share schemes from younger generations," Batley said.

Crucial to their success, Batley said, was that the schemes were easy for workers to understand and well communicated, with workers able to see how the company was performing.

"Done well, employee equity schemes can be such a fantastic way to attract, retain and incentivise employees," she said.