Bite: Should more companies give employees shares?

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What is Turners Automotive’s employee share scheme and how does it work?

Todd Hunter 0:00
You're listening to a sharezies podcast.
Unknown 0:04
Turner's Automotive Group is one of New Zealand's largest used vehicle retailers with more than 700 employees across the country. When CEO Todd Hunter joined us on Shared Lunch a couple of weeks back, we asked what Turner's is doing to keep its people engaged in the business. His answer was give them opportunity to own part of it. Around 70% of Turner's staff are now shareholders through an employee share scheme run with Sharzies. Here's how it works. and why Todd thinks more listed companies should be doing the same.
Garth Bray 0:33
People love Tina, they love Liam, but and they feel a lot of pride here, but what else are they getting out of it?
Todd Hunter 0:38
Yeah, so we um we have very high engagement levels.

How does the scheme boost employee engagement and ownership pride?

Todd Hunter 0:41
Um but what what has really supercharged that is an employee share scheme, which we run through shares ease. Um and people get two thousand dollars worth of shares for a thousand dollars. Um and they can um pay that back in an interest free loan over over three years. And so the people who've been involved with that now kind of um if you've been involved with over four years you'd own sort of fourteen hundred odd shares. She's probably, you know, probably got, you know, twelve thousand dollars worth of value for about four thousand dollars. Like it's been an amazing story and we have now seventy percent of our staff as shareholders in the business, which I just I'm so proud of and I think it's such a cool thing that um the people who are working here get to share in the the benefits of a share price going up and the profits in the business, they get dividends.
Todd Hunter 1:27
Uh and and we Are
Garth Bray 1:28
they asking you hard questions if there's any movement the other way? They absolutely do.

What financial benefits do staff receive from the subsidised shares?

Garth Bray 1:32
Yeah, one hundred percent. And themselves some probably some hard questions. Yeah,
Todd Hunter 1:36
that's right. I mean they certainly take a keen interest in it, which is great. Uh I I love that level of ownership. Um
Garth Bray 1:43
I mean working for a living is great, but being an owner adds an extra dimension of stress but also of opportunity, right? Do you think that's quite a it's a bit of a s an unlock for a lot of businesses?
Todd Hunter 1:53
I think it's a great thing, and I think more listed businesses should be doing. I do not understand why more don't do it.

Why does Todd Hunter believe more listed companies should offer share ownership?

Todd Hunter 1:58
It's a it's an IRD approved scheme. Um, all of the structures and the mechanics are there to roll out. Um, it's very simple and straightforward. And I just think it's such a good thing to be able to offer people who work in your business an opportunity to participate over and above being just an employee. And for us, we measure uh we can measure engagement by non participants and participants and the uh the participants, you know, track a little bit higher than than those who aren't in it. And so yeah, I think it's a it's a really good thing.
Garth Bray 2:30
Yeah. I guess anyone can run a sheer scheme though, can't they?

How does partnering with Sharesies make the share programme simple and visible for employees?

Garth Bray 2:33
So what's particular to the way that you're doing it?
Todd Hunter 2:34
Yeah, I think the great thing about partnering with Sharzi's on that is, you know, obviously more than a million New Zealanders have a Sharzi's account. Uh a lot of our team do, but those employee shares, they can see them in their Shares account. So although the shares may um not be vested, they can see that they own them, they can see the share price growing, they can see the value that's accumulating to them, the dividends are paid into their Sharese account. So it's a really easy invisible way for those people to um participate and see how their wealth may be accumulating. I think it's a it's a really good thing.
Garth Bray 3:08
You know, every car's got a dashboard.

What impact does the employee share scheme have on customer and shareholder experience?

Garth Bray 3:10
That's right. You know, your your investment should have a dashboard. Yeah,
Todd Hunter 3:13
and and it's sort of like we have this simple formula in this business it's like uh provide a great um employee experience means they can provide a great customer experience and the combination of those two things provide a great shareholder experience. And this business is a people business. Like we rely on our people doing a great job for our customers. And we w you know, I kind of feel like our job as you know leaders in this business is to make sure that we're doing our utmost to give them the best opportunity to do that.

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