An ownership component, through the granting of stock options, is also becoming an increasingly important element in the strategy to attract and motivate employees. The National Center for Employee Ownership estimates that more than 15 percent of the private-sector workforce in the United States own a stake in their company. That figure is expected to reach 50 percent in the next decade. A stock option plan extended to employees across the board sends an important message in regards to culture. Besides an effective recruiting practice, employee satisfaction is generated when employees know they have an opportunity to participate in the financial rewards tied to the growth of the company.
Employee referrals are also a successful recruiting tool for several sports dot-coms.
An employee referral program is a highly effective avenue for attracting talent and perpetuating your company culture, and is another way to tie the employees to the success of the company. I applaud any company in this industry that incorporates this benefit into their physical environment. Companies have increased cash compensation to make up for underwater options. Particularly in the last six months, recruiters and analysts are seeing an increased emphasis on cash compensation rather than equity. A recent PricewaterhouseCoopers survey of 123 public Internet firms found the average dot-com has boosted cash compensation for its top officers by 13 percent this past year.