Best Features of Stock Options Management Tool That Every Startup Must Have

One of the challenges faced by startups is bringing efficiency to the stock options management process, especially as they start to scale. Traditionally companies would use spreadsheets for their stock options management needs. But this is no longer viable in a competitive, digitized job market.

Leveraging a stock options management tool brings efficiency, transparency, and compliance to the process from Day 1. Tech-enabled solutions ensure that ground letters are shipped on time, buyback exercises are smooth, and any new regulations are applied with immediate effect.

6 Features of a Stock Options Management Tool

Using this tool demonstrates that a company has gone the extra mile to build a transparent, high-trust work culture for everyone, including the new hires. Stock options management tools are a cost-effective solution for startups looking to build a sound stock options policy early on. First-time entrepreneurs can especially benefit from accessing such a tool, though it is relevant to startups of all stages, especially as the stakes get higher.

Here’s a look at six features that define superior stock options management tools.

Build a Customized Stock Options Policy 

When it comes to stock options policies, one size does not fit all for every startup. Your stock options policy must create specific value for your employees and, in turn, your business. For instance, you may consider offering restricted stock to senior executives as a retention strategy. This means they receive the stock without needing to purchase it.

Alternatively, you may decide to offer sweat equity shares, i.e. shares at a discounted price, to some employees who bring unique skills or technical competence to the business. A superior stock options management tool enables you to customize your stock options policy with ease and in a way that best suits the needs of your startup’s specific business goals.

Whichever tool you use, it should be equipped with the resources to help craft a customized stocks management policy and validate it as per the market standard. Making the entire structure tax-efficient is another value-add, as it benefits the company and the employees (because everyone wants to save taxes!).

Digitize All Processes

The entire stock options workflow involves a whole spectrum of repetitive tasks. The old approach of using spreadsheets and manually executing basic but important tasks such as sending out grant letters on time and executing buy-backs is high on manual effort. It is also time-consuming and unsustainable in a digitized world, as it increases the potential for error and delays. This can be a demotivating experience for your team.

Now, all these tasks can be automated using a stock options management tool. This is a boon for startup teams, which are usually lean. You can choose a percentage you’d like to share, send out letters and get them signed within a unified platform on a tight schedule.

A stock management tool also sends out timely reminders so that all tasks are completed on time and that there are no gaps in the workflow.

Access All Reports and Analytics in One Place

As an employer, you want to be able to track the success of your stock options policy and whether it is serving the needs of the business and its employees. A smart stock options management tool brings measurability to the process. You can access reports that can help strengthen the policy, as well as actionable analytics at your fingertips.

An Accessible Dashboard for Employees

Employees also want to be able to keep tabs on their stock options. A smart stock options management tool gives them access to a secure, transparent dashboard where they can keep track of their stock options. They can also make transactions in the future with ease. Such a platform nurtures trust in employees and can play a transformative role in your retention strategy. Employees will feel like equal stakeholders in the business, as it adds one more identity to their profile – wealth creator.

Ease of Use

Having access to a single, unified platform enables multiple stakeholders to use and manage the platform simultaneously. A superior tool also leverages blockchain to create a single point of truth for all stakeholders. Any changes are immediately notified to those with access.

Managers of the policy will also have access to a comprehensive dashboard that offers access to information with a few clicks. It enables them to make quick decisions about new hires and existing employees and launch new policies with ease. Legal agreements can also be simplified and made accessible to everyone who needs it.

Effortless Integration With Your Existing HRMS 

Startups, in all probability, are already using a robust Human Resource Management System (HRMS). A smart stock options management tool enables easy integration with your existing HRMS. This allows quick extraction of all employee data, and all employees can be brought into the stock options management framework with ease.

In Conclusion

Stock options are an attractive option for employees as it creates an opportunity to grow wealth in the long-term and have a larger stake in the businesses they work for. However, the process of accessing stock options must also be made smooth and hassle-free so that employees see the value early on.

By leveraging a well-designed, effective stock options management tool, companies can bring efficiency, accuracy, and transparency. It helps to deliver an elevated stock options experience for employees and other stakeholders.

trica is a state-of-the-art stock options management tool that is leveraged by startups to build a smooth, superior, paperless experience when rolling out stock options programs. This end-to-end solution is a great investment for businesses looking to hire and retain the best talent, with stock options as an offering. This is a full-stack solution to a company’s most valuable asset.

Book a demo today to know more!