Talent retention is a critical concern for employers ahead of an initial public offering event, with private companies significantly more focused on retention compared to public companies, according to a new survey by WTW.
The survey, which polled 50 global employers ranging in size from fewer than 1,000 employees to more than 10,000 employees, found more than half (53 per cent) cited the offering of retention incentives as the most common compensation change associated with an IPO. Employers also cited strategies such as bonus structure modifications (40 per cent), stock lockup periods (36 per cent), base salary increases (32 per cent) and performance metrics adjustments (28 per cent).
Private companies most frequently cited changes in retention incentives (63 per cent), bonuses (50 per cent) and base salary increases (38 per cent) post-IPO, while public companies report experiencing different priorities, including “other” changes (40 per cent), performance metrics adjustments (27 per cent) and equal emphasis (20 per cent) on base salary, equity and bonus changes.
More than half (53 per cent) of respondents indicated they didn’t offer specific awards throughout the IPO process. Among employers that haven’t been through an IPO, 32 per cent said they plan to maintain their existing awards.
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