Recruitment: A Critical Advantage to Going Public

People are your most valuable asset

Ask any successful entrepreneur about their company’s most valuable asset and they are likely to say that it’s their people. Without a supportive, dedicated, talented staff, there’s only so far that any business can go, but today’s environment has made attracting that talent a real challenge.

Increasingly, companies seeking a competitive edge in recruitment are offering employee stock and stock options in order to differentiate their benefits package. It’s one of the least recognized but most important reasons for a private company to choose to go public.

What are stock options?

When a company offers its employees stock options, it gives them the right to purchase a defined number of its own shares at a specified price by a given date. That price is generally lower than what is available to the public, giving the staff the opportunity to view their compensation package as including real ownership in the company’s future growth.

Stock options provide an advantage that offers a true win-win. Companies are able to more quickly attract the people they want while boosting their dedication and commitment, and employees increasingly see stock options in new ventures as a significant incentive both for signing up and for working hard.

Stock options enhance benefits packages.

Issuing stock options to employees is a low-cost way for companies to enhance their benefits package. Stock options issued by a public company have significantly more value to recipients since they can monitor the underlying stock value and get excited as they see the business grow and stock increase in value.

While the costs of more traditional benefits continue to rise, entrepreneurs can provide stock option plans that represent almost no outlay of cost while raising their recruitment profile. Given the choice, motivated employees are increasingly drawn to a public company offering stock incentives or stock option plan participation, then a company that is simply offering a commission, salary and traditional benefits.

Stock options align employee and company interests.

There are few things that encourage employees to work towards a company’s successful future like the knowledge that they are personally invested in that success.

Employees who view their company’s profitability as directly affecting their own pockets are more likely to be diligent in their work and watchful about waste and fraud. They become true believers whose enthusiasm for their company’s mission is expressed both internally and outside of the workplace, where they are often vocal brand ambassadors.

Use stock options to recruit

Companies that have gone public can offer stock options as signing bonuses and as part of a commission structure. Tying stock options to deal flow, revenue generated, and profitability has proven to be one of the most successful ways of getting employees to join a company, innovate and work hard towards their company’s long-term success and growth. 

Employees who are paid like owners, act like owners.

By definition, investment is a forward-looking activity, and as a result offering potential employees the ability to become investors in the company they’re about to join builds a staff whose attitude is built around both short-term and long-term success. 

When employees are paid like owners, they act like owners. They are not only eager to join the team, but are more apt to be collaborative, diligent, dedicated and loyal contributors to the company’s value and profitability. Companies that go public have an enormous advantage when trying to attract and retain talent.

Can you help us go public to leverage stock option benefits for recruitment?

We help entrepreneurs develop a go-public strategy, tap into our network to build the professional team, and manage the process to facilitate a direct listing, reverse merger or initial public offering. Our services help entrepreneurs take their company public so they can recruit talent, raise capital, complete acquisitions, and create significant wealth. Connect with us to learn more.

Read More Articles