Survey Results Revealed: Workplace and Incentive
June 26th 2015 | Posted by phil scott
Workplace and Incentive survey results: Equity options attract the best FDs
UK companies can increase their chances of attracting the best finance directors by offering equity stakes, the latest FD Recruit survey has revealed.
The 2015 FD Recruit remuneration survey, distributed to hundreds of top FDs throughout the country across a range of industries, found that equity and share options were listed as the most desirable incentives to FDs and CFOs.
However, the survey also showed a large disparity in understanding from employers, as a majority don’t currently include such incentives in their remuneration packages. While two-thirds of FDs said it would attract them to a role, only one-in-ten currently benefited from it.
Phil Scott, director of FD Recruit which undertook the industry-wide survey, said: “Some companies are unwilling to give away equity share and others simply aren’t aware of the appeal it holds to the FD. Whatever the reason, it is clear from the finance director community that organisations can use this to attract higher calibre candidates. Meanwhile, companies are limiting their options by not including this in their packages.”
The survey also found that performance-related bonuses, whether linked to individual or company-wide performance, is still a huge draw for four in five (78%) respondents. The average bonus paid out was the equivalent of between 20% and 25% of basic salary and represented between 15% and 20% of total earnings.
Pensions are another key incentive, opted for by 64% of respondents, medical and dental cover by 76%, but flexible and remote working was offered to just less than one-third (31%).
Phil Scott added: “Performance-related incentives are a great way to attract the best staff. Not only do they help mitigate risk on the company’s behalf, but they offer the potential of great rewards for individuals”.
“Bonuses are a common and effective part of remuneration packages, but it is clear from our survey that equity is also highly desirable. Companies looking to recruit should use this knowledge to make their proposals more attractive and secure the best individuals.”