Employees can get equity in a company through stock options. Stock options give an employee the ability to buy shares of a company at a set price if they choose to. The price is typically set at the time the option is granted and is usually below the market value of the company's shares.
If the company's stock price increases, the employee can exercise their option, buy shares at a lower price, and then sell the shares for a profit. If the company's stock price decreases, the employee may choose not to exercise their option and will not incur any losses.
Employees typically have a vesting period for their stock options. This means that they cannot immediately exercise their options and must wait for a certain amount of time before doing so. Vesting periods typically last four years, but they can vary depending on the company.