Asda’s sharesave scheme is one of its employees’ most valued benefits. For this reason, Mike Hazelgrave, reward manager, believes it is vital that nothing detracts from this.
Staff are warned, for example, that share prices can go down as well as up, but this is done in a way that won’t put staff off. “We stress that if the share price does go down, they are not to worry because they will get back their savings plus a bonus. We [also] make it clear the money is not lodged with Asda, it is sent to a bank or building society, and that money is always safe.”
Employees are also made aware of the fact that they would have to pay capital gains tax if they make more than £8,800 profit. The firm also has executive share options, for which around 1,000 staff are eligible. The scheme has been approved by HM Revenue & Customs, so the first £30,000 of shares are free from income tax.