Why Gen Z workers would prefer to be paid in shares
Updated . First published at
According to a new report out this morning, more younger Australians are interested in receiving shares in lieu of, or as well as their regular pay.
The data from investment platform Sharesies, 61 per cent of those surveyed under 35-years-old said they are open to a non-traditional method of pay.
According to a new report out this morning, more younger Australians are interested in receiving shares in lieu of, or as well as their regular pay. iStock
Fifty-nine per cent of Gen X said cash is king, while 76 per cent of those surveyed overall felt their pay wasn’t generating wealth.
“About three quarters of employees now reckon that the pay just doesn’t cut it, wage growth is not there and that’s understandable,” Nine money editor, Effie Zahos told Today.
“When you look at the past five years, wage growth has been about 18 per cent, then you look at another asset class like shares and over the past five years, with dividends going in there, it’s 47 per cent, so I can see why workers are thinking ‘I want more than just my pay.’”
While Sharesies is an investment platform, Effie also looked at Hays and they showed 36 per cent of professionals would actually like to see some kind of share incentive as well.
“Commonwealth Bank offers a grant of $1000 to eligible employees in CBA shares, Qantas only recently gave it for the first time to its non-execs and Coles allows its staff members to salary sacrifice into the Coles Group shares,” Effie said for example.
“So there are quite a few companies out there that do it, my best tip would be get onto the government’s website Moneysmart, and it actually shows you different ways that it could possibly happen because each company is different.
“Traditionally, you buy into the company that you work in, it could be at a discounted price, you could do it salary sacrifice like Coles, or you could do it as a loan, but do get advice because in some cases, if you’ve got a HECS debt, it could impact how much you have to pay back.” So you’ve really got to watch.”
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