Workplace Trends Affecting Employers in the U.S.

Post contributed by

March 12, 2024

Global Shares

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There are a range of macro and microeconomic factors currently impacting employers across the U.S., regardless of industry. While many of these forces will be beyond the control of companies themselves, there are actions which HR teams and Compensation & Benefits champions can take to try and mitigate against them, such as adopting some form of equity compensation or medium-to-long-term equity award as part of their employee benefits packages. 

Environmental, Social and Corporate Governance 

ESG goals continue to be extremely important. ESG can include targets for achieving gender equality, recycled materials used in production and reducing emissions. Companies, both public and private, are tying these targets into their equity compensation rewards packages at all levels from the C-suite to the factory floor. ESG presents a view across the whole range of employees and can be a fundamental component in the long-term engagement of people globally. 

Diversity, Equity and Inclusion

Closely linked to ESG, DEI targets include avoiding pay differentials related to any form of discrimination or influence such as gender, age, ethnicity or cultural background and, as a result, can factor into a more positive corporate culture. By creating a culture that favors inclusion and equitable processes, companies may increase representation and diversity more organically. Equity compensation rewards can help to create a positive workplace culture, making them feel valued and appreciated.

Hybrid Working 

The return-to-office debate will no doubt rage on throughout 2024, and developing a strong hybrid culture will be essential for many employers when it comes to standing out in a competitive jobs market. Flexibility and adopting a hybrid approach, where possible, could help to increase employee satisfaction. Hybrid workers can have higher engagement, better overall wellbeing and a lower turnover risk compared to fully on-site workers who are remote-capable. Regardless of their working arrangements, the addition of an equity compensation offering to your employees’ benefits packages can present an opportunity to further connect with employees who may feel upset or underappreciated. 

Mergers & Acquisitions 

After years of inactivity this area is expected to increase with many commentators optimistic that deal-making is likely to accelerate in 2024. 

While this is potentially good news for founders and early investors, going from private to public or making any change to the ownership of your company is also going to be majorly disruptive. Being prepared and knowing you have the support of a trusted equity management provider looking after your employee share plans at such a crucial time can be very reassuring.

Executive Compensation 

Say On Pay provisions mean there is more focus than ever on the remuneration packages of executives. The role played by Executive Services teams has become more important with increased regulation and public focus on the pay and other benefits being offered to top executives. Involving people in the success of your company via the "equity-based" incentive plans is a great way to provide motivation, but needs to be balanced with a level of support when it comes to managing the legal requirements they may be exposed to at the C-suite level, like protecting against insider trading activities or use of 10b5-1 plans.

Stability 

In the aftermath of the Great Resignation workers are expected to favor stability with many looking at reasons to stay in their current roles. HR Teams and Rewards & Benefits champions may find long-term equity comp rewards could help with this.

This stability brings with it more focus and an appreciation of longer-term goals, objectives and rewards, such as equity-based compensation. 

While this is expected to influence and lead to a decrease in lateral moves for people, it could impact wage packages with employers shifting away from signing bonuses or compensation bonuses for new hires, but making room for retention-based bonuses. 

Inflation, Lay-Offs and Cost-of-Living 

People continue to balance seeking pay raises based on inflation with the fear of lay-offs. Rewarding employees for achieving longer-term goals could help to alleviate fears that they may have in the short term. By doing this you are presenting them with a long-term picture rather than a reaction to any current economic activity.

Equity compensation can also be a great way to combat inflation-based concerns since these awards tend to focus more on medium- and long-term goals.

Legislative Changes 

The influence of changes to Pay Transparency and Say On Pay will be felt more and more as the year progresses. More U.S. states now require job advertisements to include information about salary, bonus and equity compensation packages, with New York (September 2023) and Hawaii (January 2024) having already introduced requirements for displaying hourly wage rates and salary range in recruitment ads. 

Political factors 

The presidential election in the United States will impact the economy in various ways. There is also a major general election scheduled to take place in India during the first half of 2024, while ongoing conflict in various corners of the globe will no doubt contribute to the state of the economic landscape. 

Advancements in AI

As the adoption of AI becomes more commonplace, people are looking for practical uses that go beyond entertainment with one area of interest being how the technology could be used to analyze big data. AI has the ability to review reams of information so could potentially look for trends, anticipate and identify people who may be at risk of leaving, and instead could be cultivated or discussed away from a job change before they elect to leave. By using it this way to assist with a company’s Total Rewards Packages it might prompt reviews, or at least allow for conversations to be had earlier. Another area of interest is how AI could be incorporated into Comms and Education for HR teams. 

Find Out More

At Global Shares, a JP Morgan company, we believe that involving people in the success of the company via participation in equity-based incentive plans is the best way to motivate them to achieve success and create a stronger company both now and into the future. 

We provide businesses of all sizes with an all-in-one equity compensation management solution. We handle all the equity award administration so you have nothing to worry about. 

As a platinum sponsor of the Equilar and Nasdaq Board Leadership Forum on April 16th in New York and a gold sponsor of the Equilar Summit 2024 from June 5th-7th in Boston, we look forward to seeing you for what promises to be informative and engaging programs.

You can find out more here. 

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Please Note: This publication contains general information only and Global Shares is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. The Global Shares Academy is not a substitute for professional advice and should not be used as such. Global Shares does not assume any liability for reliance on the information provided herein. 

Global Shares is a trading name of Global Shares Ireland Limited (“Global Shares Ireland”), a company registered in Ireland, registration number 412396 with its registered office at Unit 2, Building D, West Cork Technology Park, Clonakilty, Co, Cork, Ireland which provides share plan administration services and software. Global Shares Inc. (“Global Shares US”) is incorporated in Delaware and provides share plan administration services and software to certain U.S. Companies. 

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Global Shares Trustees Ireland Limited, Global Shares Trustees (UK) Limited, and Global Shares Trustees Company Limited (collectively, the “Trust Companies”), are Irish and UK trust companies that provide limited trust services for corporate share plans. 

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