Should Your Business Have An Employee Share Scheme?

Have you been considering an employee share scheme for your business? It is something that our corporate solicitors have spoken to business owners about a lot recently. We work with a lot of business owners, and they reach a stage with their employees and hiring where the traditional incentives are no longer enough. Things like a good salary, bonuses and workplace perks can only go so far. This is when you may want to consider an employee share scheme for your business.

If you are building your business for long-term success, it is only normal to consider something that will retain your key talent. You also want something in place that attracts the right people too. Something meaningful, like a stake in the business, will help to retain and attract talent. It will also help people remain focused on the success of the business. The better the business does, the better they do.

So, should you have an employee share scheme for your business and how could it work? We tend to help businesses create employee share schemes that are on certain legal terms. For example, employee performance or length of service.

Research shows that over 20,000 companies and organisations operate at least one employee share scheme. It is quickly become a well-established part of the UK business market, and it works for a wide range of reasons. Employees have a reason to stay within your business. It helps to attract new clients. Employees are encouraged to think like shareholders and invest in the future success of the company.

An employee share scheme is a cost-effective way to reward performance without immediate financial impact. When you speak to a financial expert, you’ll also see that there are a lot of tax benefits to you, as the employer, and to your employees.

If you are considering an employee share scheme for your business, speak to our corporate law specialists. We can help you ensure that it is the right legal decision for you and your business. Each employee share scheme has different rules, eligibility criteria and implications. Our corporate lawyers can talk through these with you to ensure you make an informed decision.