How to leverage the new law on sharing value in companies

Celine Vievard
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12/18/2023
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Retention
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4 mins

A few days ago, the bill on "value sharing in companies" arrived in Parliament. The aim is to promote a better distribution of profits within companies, between employees and shareholders. Companies will have to involve their employees more closely in the company's success. To find out more, click here

It may sound scary to some, but it has its advantages. Profit-sharing has been proven to : 

So, we encourage you to see this new law as an opportunity rather than a constraint. But how do you set up profit-sharing schemes? 

Shares

One way of integrating and rewarding your employees with the company's wealth would be to offer them the opportunity to buy shares in the company at an attractive price, or to offer them stock options. By becoming shareholders, employees are involved in the company's success, creating a sense of belonging and motivation. In this way, stock options offer a powerful way for companies to engage their employees, while reinforcing their overall performance and promoting a corporate culture based on shared value.

Employee savings

Employee savings schemes are also a powerful tool for engaging and rewarding employees. Companies can set up employee savings programs, enabling employees to set aside part of their pre-tax salary to invest in company shares, mutual funds or other financial instruments.

There are three types: 

PEE (Plan d'Épargne Entreprise) 

Employees can benefit from tax advantages by investing part of their salary in the PEE. The money saved can be invested in a variety of funds, such as equities, mutual funds, bonds, and so on. This motivates employees to spend part of their salary in the plan and contribute to the company's growth, knowing that they can reap long-term financial benefits.

Collective Retirement Savings Plan (Perco)

The Perco offers employees the opportunity to save for their retirement. Its main objective is to create retirement savings, but employees benefit from tax advantages similar to those of the PEE. As a result, employees are encouraged to participate in the plan in the knowledge that their savings can be used to secure their financial future.

Retirement Savings Plan (PER)

This savings plan is a more recent and simplified version of the other savings plans. The PER allows employees to contribute to a retirement savings plan, which is then invested in a variety of financial vehicles. Similar to the Perco, the PER is primarily focused on retirement savings, but it also offers employees a financial advantage, as it enables them to increase their savings and share in the profits generated by investments made within the PER.

The bill on the sharing of value in companies offers employers an opportunity to strengthen their relationship with their employees and involve them more closely in the company's success. Employees can become shareholders by offering shares, which increases their motivation, commitment and sense of belonging. Employee savings schemes such as PEE, Perco and PER also offer employees attractive tax benefits. These initiatives are ideal for creating a corporate culture based on value sharing, boosting overall company performance and fostering talent retention.