According to George Bernard Shaw, “The single biggest problem in communication is the illusion that it has taken place.”
Sometimes we hear that HR or financial directors don’t feel that their company’s share plan is generating the level of retention or employee engagement they expected. They ask if the plan is flawed or if there is something better they should replace it with. They might also question what return on investment the business is getting, and if this covers the professional fees incurred in designing and implementing the incentive arrangement.
Sometimes there are defects that need remedy or an evolution of the technical solution to adapt to changed circumstances. But often the lack of participant uptake or appreciation of a particular aspect of the reward package is simply due to poor communication.
HMRC has recently published new research on UK tax-advantaged employee share plans, carried out by the Social Research Institute at Ipsos MORI (an independent research organisation). The research covers the four UK statutory tax-advantaged plans: Save As You Earn (‘SAYE’ or ‘sharesave’), Share Incentive Plan (SIP), Company Share Option Plan (CSOP) and Enterprise Management Incentive (EMI).
The aim of the review was to suggest improvements and consider how increased uptake could be stimulated.
The research sought to:
- Understand the motivations for, and barriers to, participation in these tax-advantaged plans
- Explore awareness and knowledge of the current offerings
- Consider the process and burden of administering the schemes
- Consider how the plans are communicated