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The goal of staff reward system is to motivate employees to enhance their corporate identity, and then increasing the corporate overall combat effectiveness. While there are several immediate motivating tools, but since the Expense of Employee Bonuses system was established in 2006, the impact on the recruitment and retention of talent is very large, the employees get real bonus maybe even less than half the previous and the incentive effect greatly reduced. Some corporations with earnings may also motivate their employees by paying cash. But some corporations without earnings can’t pay out the cash to motivate their employees and then because the stock prices are getting lower, finally, the effectiveness of staff stock options and treasury stock is also worthless. The Restricted Staff Award (restricted stock) is the new boost for the industries, especially for those corporations who do not have earnings and the stock prices are low. Because of its flexibility and functions of both stock dividend and option, it can effectively retain particular talents and employees then have an important help of the corporate operations.
The Solar Energy was once famous industry in Taiwan, but with the changes of industrial structure, the supply and demand are also different. Whole industries had run into a heavy loss since 2012. The stock prices are falling rapidly and staff turnover rate is also high. Especially some cell manufacturing corporations are proactively to issue Restricted Stock Award to employees as motivating tool to change the situation.
This research study is based on Motech, NSP, Solartech, DelSolar for example and compare the staff turnover rate before and after when they issue RSA. Then also compare with current other motivating tools in Taiwan to explain and understand the Restricted Stock Award is a powerful one to retain employees.
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