As the economy improves and the job market strengthens, many companies are opting to enhance their employee stock purchase plans in an effort to improve their benefits package, according to recent research from Fidelity. Alas, employee participation in these plans remains fairly low. A 2011 survey from the National Association of Stock Plan Professionals cites that two-thirds of companies surveyed reported an employee participation rate of 40% or less.
Following are the top five overlooked benefits of employee stock purchase plans:
1. Employee stock purchase plans allow employees to buy company stock at a discount
2. Employees can contribute automatically through payroll
3. An employee stock purchase plan is another way to save for retirement
4. An increasing number of workers have access to company stock
5. Savings within a company stock plan are more accessible than savings within a 401(k)
The bottom line is that many employees are missing out on the advantages of participating in an employee stock purchase plan, with benefits raging from buying company stock at a discount to having a means to supplement your 401(k). Kevin Barry of Fidelity asserts, “Anyone that has access to one of these plans should consider taking full advantage of the benefits by enrolling and adding an employee stock service plan to their overall financial plan.”
