| Employee share schemes to become more important part of pay package |
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Employee share schemes are set to increase as part of the overall design of compensation packages for employees, according to human resource consultants, Mercer, who are currently holding a series of seminars for employers on this subject.
There has been huge growth in employee share schemes in recent years and they have become an important part of the compensation packages that are key to attracting and retaining quality staff.
Speaking at the share schemes breakfast briefing, Sean Quill, of Mercer’s Human Capital Practice, said: ‘The growth in share schemes has had a very positive impact on the employee/employer relationship and is a key financial incentive for employees, especially at a senior level. This growth is likely to be increased even further with the advent of the 2001 Finance Act.’
‘The seminars will give an overview of employee share schemes and the design of an effective employee compensation plan. Share option schemes and share participation schemes are just some of the investment opportunities now being made available to employees, in addition to salary, retirement and other benefits in an overall compensation plan,’ added Quill.
Brian Duncan, Head of Mercer’s Human Capital Practice, said: ‘It is important to place these schemes in the context of an employers overall compensation strategy. This is particularly relevant at a time when there is considerable uncertainty in stock markets and employee expectations in terms of potential returns from the shares may not materialise.’
Duncan continued: ‘The key to a successful employee share ownership strategy is putting in place an effective two-way communication process between employees and employers. Only then will these share schemes address the fundamental issue of harmonising the interests of all the stakeholders in the business.’
Current trends in compensation strategies vary between companies in Ireland. The influence of US multinationals, tax incentives, growth in the equity markets and the sale of public companies have all made share schemes an important feature of compensation programmes in Ireland. |
Mercer, Ireland is holding three seminars on ‘Employee Share Schemes: Part of a Successful Compensation Strategy’, in Dublin during June. Further information is available by contacting telephone: 01 604 8100.
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| Article appeared in the June 2001 issue.
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