We know that attracting and retaining top talent is the biggest challenge for Australian early-stage startups. The benefits of offering equity packages to employees are too hard to ignore, especially as they serve both the employer and the employee in a time of need.
We recently hosted events together with HiBob, in Sydney and Melbourne that focused on attracting and retaining tech talent. In these sessions, we discussed several strategies that companies can use to help them achieve this goal. As a follow-on from these insightful events, we’re sharing ideas and advice on how to attract and retain tech talent with an ESOP (employee stock ownership plan) as part of your remuneration package.
This blog will reveal what makes ESOPs a no-brainer, especially for smaller startups with limited budgets, and how to make it a key component in your hiring and engagement efforts.
As part of the Think & Grow 21/22 Startup Salary Guide, we were able to discover the following data on ESOPs in the market:
Out of all the data that was revealed, these were the notable ESOP trends we saw:
The amount of equity allocated is a combination of three things:
The benefits of offering an ESOP
Offering an employee equity or ownership in a company is given in an addition to their regular salary, in the form of a contract known as an ESOP (employee stock option plan).
ESOPs are most commonly used as a type of incentive for smaller startups because they benefit everyone.
For the employer:
For the employee:
How to communicate an ESOP as part of your remuneration packages
To encourage your talent to lean in to ESOP more, you should educate them on what you’re offering and most importantly, what it means for them. Here are some ways you can educate them:
For candidates in their final stages:
For existing employees:
Ways to train your HR and financial team to provide this education:
Above all, being transparent and communicating clearly are fundamental when implementing and distributing an ESOP for your people.
An ESOP has multiple benefits, especially for smaller startups with lower budgets. Stay in the game by competing for top talent and building momentum and purpose within specific roles to accelerate high performance. But, above all, use communication and transparency at all times.
To find out more about how Think & Grow can help you attract and retain high performing tech talent for your startup, contact email@example.com.
Think & Grow are growth partners for bold technology businesses. We utilise our global network, deep market knowledge and best practice methodologies to facilitate sustainable growth across borders, help customers gain their first clients and pave the way for long-term, actionable strategies driving revenue growth and capitalising in undiscovered markets.
HiBob was founded to modernise HR tech. HiBob’s intuitive and data-driven platform, bob, was built for the way people work today: globally, remotely and collaboratively. Sine its launch in late 2105, bob has achieved consecutive triple-digit year-over-year growth, and become the HRIS of choice for more than 2,500 modern, midsize and multinational companies who understand that a powerful, agile HR tech suite is mission critical and a key driver of organisational success. Fast-growing companies across Australia and the world sucha as Seer, Novatti, Airtasker, Gong, Fiverr, and VaynerMedia rely upon bob to help HR and managers connect, engage, develop and retain top talent.