The Relevance of Share Schemes to Motivate Employees During Covid

share schemes

Covid-19 has undoubtedly affected every business and despite the Job Retention Scheme and the new Job Support Scheme, many businesses will be forced to cut salaries and make redundancies. Using Share Schemes to motivate employees is a great, tax efficient alternative.

Using Share Schemes to Motivate Employees

Even when the outlook improves, it may not be possible to provide employees with salary increases and bonus packages. So how can employers motivate and reward existing employees who will play a key part in the business’ recovery?

In addition to the cash-flow and motivation advantages, ownership of company shares (or awards to acquire shares), can help to align the employees with the business strategy and increase shareholder value.

Share schemes are divided into tax-advantaged share schemes and non-tax-advantaged share schemes. Within each category they can take many forms, each with various benefits depending on your objective.

Our article on EMI Share Schemes sets out more details of some of the share schemes available and how Dixcart can help you and your employees benefit from them.

Sarah Gardener has also recorded an edition of Dixcart Discuss where she explains how share schemes can provide a tax advantaged way to help you recruit or retain key employees by giving them ‘skin in the game’.

Additional Information

For more information on using UK share schemes to recruit or retain employees due to Covid-19, please contact Paul Webb, or email:

The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.