Morgan Stanley at Work has released findings from its fifth annual State of the Workplace Financial Benefits Study, focusing on equity compensation. The study examines how employees and HR executives in the United States perceive equity compensation amid economic uncertainty.
The results indicate that employees increasingly view equity compensation as a crucial motivator and financial stabilizer. HR leaders agree that equity remains an essential tool for talent management strategies. However, differences between HR and employee perspectives suggest opportunities to improve education and engagement with equity plans.
Among the key findings, HR leaders recognize the long-term value of equity despite market volatility. They believe it helps employees achieve long-term investing goals such as retirement. Additionally, 67% of employees and 88% of HR leaders at private companies emphasize the importance of future liquidity events or IPOs, highlighting a need for liquidity solutions in uncertain times.
Almost half (48%) of employees see equity as an effective motivator and wealth generator. They cite having a stake in their company’s success (28%), meeting long-term investing goals like retirement (23%), and providing additional income (22%) as top benefits.
"Equity compensation is understood as a strategic necessity not just for executives but across all levels of the organization," said Craig Rubino, Head of Corporate Relationship Management and Engagement at Morgan Stanley at Work. "As awareness and interest in equity plans grow, it's crucial that we continue to enhance education, support, and access."
The study also reveals ongoing opportunities to improve program engagement. Over four in five (84%) employees express interest in receiving equity compensation, with more than a third seeking guidance to maximize its benefits. While 36% of employees find their company's education programs very effective, this figure rises to 43% among HR leaders.
"In today’s market uncertainty, we’re seeing that employees increasingly see equity compensation as a powerful force," said Kate Winget, Chief Revenue Officer of Morgan Stanley at Work.
Further details are available in Morgan Stanley at Work’s State of the Workplace Study. The company will publish additional findings on financial benefits and retirement benefits soon.
The data was collected through surveys conducted by Wakefield Research involving 1,000 U.S.-employed adults and 600 HR leaders.
Morgan Stanley at Work provides workplace financial benefits designed to build financial confidence while helping companies attract top talent through modern technology and dedicated service offerings including Equity solutions among others.
Morgan Stanley Wealth Management offers various financial services globally through its extensive network serving corporations, governments, institutions, and individuals worldwide.