Local companies are now turning to employee share schemes (ESS) to boost performance, retain key employees, and plan future exit strategies.
Currently fewer than one per cent of Australian firms have any kind of employee share scheme in place. However, as the skills shortage continues and high demand for everyone from accountants to engineers increases – continually increasing salaries and other perks may not be feasible.
Putting an Employee Share Scheme (ESS) in place could be the key to boosting South Australia’s business performance according to figures.
Research conducted by the Department of Industry Innovation and Science found companies which implemented employee share schemes had lower employee churn, increased sales, delivered higher value add, and better productivity – and it was SMEs who benefited the most.
dmca advisory has considerable experience working with a range of companies to formulate suitable ESS programs – overseeing every detail. Tania Tonkin believes in a market where businesses need to attract top talent, a well formulated ESS could be transformational.
“Today’s employees deserve to be empowered with greater flexibility and buy-in so they can share in the success of a business — and feel more engaged about coming to work every day.
A well-structured employee share scheme could also ensure SME and family businesses continue to increase in value even when founders were thinking of retirement.
“We often suggest business owners consider their own employees when planning to sell a business. It’s a form of succession planning that ensures a business can preserve what has been built up over years, and it can often save jobs too.”
If you would like more information about establishing an ESS in your business, advice on succession planning, or to discuss selling a business, call dmca advisory for more information and an obligation free meeting with one of our advisers.