Abstract

Equity shares are increasingly utilized by companies to retain talent and align employee interests with organizational goals. Large-cap stocks, due to their stability and growth potential, offer a unique context for evaluating this retention strategy. Despite their widespread use, the effectiveness of equity shares offerings in retaining employees at large- cap companies remains underexplored. Understanding the impact of such equity incentives on employee retention and the associated financial metrics is crucial for optimizing retention strategies. This study employs an Analysis of Variance (ANOVA) to examine the impact of different equity share offerings on employee retention across several large-cap firms. Data were collected from 100 companies, with employee retention rates and equity share allocations analyzed over a five-year period. ANOVA was used to assess whether variations in equity share offerings significantly affect retention rates. The ANOVA results indicate that equity share offerings have a statistically significant impact on employee retention (F(3, 96) = 4.67, p < 0.01). Companies offering higher equity shares showed an average retention rate of 87%, compared to 73% for lower equity share offerings. The findings suggest that more substantial equity incentives are associated with improved employee retention.