Our recent survey revealed that more participants are holding shares long-term to ride out market volatility, while at the same time searching for tools and resources to help with identifying undervalued securities or making decisions for retirement and other milestone events.*

Most significantly, the ways people engage with their personal finances—including their employer stock plan benefits—have changed:

Engagement and awareness: Employees are more in touch with their accounts than before the pandemic, with the volume of customer service phone calls, stock plan log-ons, and online interactions meaningfully higher.

Real estate: With much of the world now remote, many people tapped their stock-plan accounts to cover the cost of a second home or permanent move to a more desirable location. One particularly popular strategy that emerged was borrowing against company stock shares through a line of credit, when possible.

Early retirements: Many people prepared for or pulled forward early retirement—whether that meant reallocating assets in long-term investments to protect nest eggs or leveraging stock-plan assets to cover unexpected expenses.

Seeking advice: Uncertainty has contributed to an increased demand for relationship-based customer service, advice, and guidance for understanding how stock-plan positions complement an overall financial plan.

Capital gains implications: Election uncertainty and possible future tax changes were strong motivators for investors to revisit their financial plans, especially in the last quarter of 2020. Many chose to sell assets and realize capital gains in the current environment, rather than wait on any possible legislative changes down the road.

A shift to what comes next

While we may not have returned to what would have been "normal" for 2019, many of us have switched gears from the short-term crisis management of the early spring to longer-term questions, both personally and professionally.

For example, where executives once worried about how to handle home-office flexibility during the pandemic, many companies have been impressed by the success of their remote workforces. In many sectors productivity is higher, and major players like Twitter, Square, Slack, Shopify, and Zillow have permanently made some or all their roles remote, while many others—including banking giant Deutsche Bank—are exploring opportunities for long-term work-from-home arrangements.

Fundamental changes in the economy, government, and in our lives are happening now. Many are now asking, if this situation isn't as temporary as we originally thought, how do we need to adapt?

People supporting people

This year erased the lines between our professional and personal lives. In many ways, the disruption and our shared experience of extraordinary circumstances have broken barriers and allowed us to forge even stronger professional relationships—from kids and pets making appearances in business calls, to simply needing to talk about pandemic-related stress or life changes with another human being.

With everything that has changed—especially our lack of social connectedness—we need to be able to reach a knowledgeable human who is there to help when we need it. We've seen that simply taking the time to listen to our clients, understand their needs, and provide personalized guidance doesn't only address financial planning needs, but also affects quality of life. Service and support will need to continue to account for the full person in ways that traditional financial advice perhaps does not.

While challenging, this last year has also served as a profound reminder that our most important asset is each other—and our talent. Now more than ever, it's key to talk to our people. Whatever lies ahead, resilient leadership will require us to continue to raise the bar, think creatively, and share our human side.

* Data referenced is derived from E*TRADE Securities LLC proprietary Annual Stock Plan Participant Survey conducted in September 2020 to current stock plan participants of E*TRADE's corporate clients.

Kevin Meyersburg, Managing Director, Executive Services E*TRADE, is responsible for overseeing the Private Client and Executive Services Group at E*TRADE. He implemented the successful merger of the previous Private Client Retail model into one Relationship management team. This new division has since gone on to cover retail and C-Suite corporate services participants. With over 20 years of experience in the financial services industry, Meyersburg has a track record of developing key relationships with high net worth individuals, adapting himself and his team to mergers and changes in company directions, and implementing innovative strategies to achieve results. Prior to his tenure at E*TRADE, Meyersburg served as the Vice President of the High Net Worth Relationship Group at Bank of Montreal/Harris Bank for three years before it was acquired by E*TRADE.