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Cosmetics Powerhouse Elf Beauty Inc. offers an unusual remuneration structure to employees.
Unlike other organizations, the company gives almost all its actions of around 600 workers at the time of rental, as well as new grants each year. This means that regular employees outside the C-Suite, who may not have had the opportunity, are able to take advantage of the type of purchase options for the most often reserved for senior management.
But Trump's latest price announcements have transformed this remuneration strategy into an HR problem. According to ELF, around 80% of the company's products, including oils and foundations, are manufactured by third -party sellers in China, which has become a major concern when Trump announced a 145% levy on goods from this country.
This means that if some American employees may worry about how these prices will affect the general economy and the hiring environment, ELF employees see their options to buy actions lowered by commercial uncertainty. Elf's share price was $ 133.91 in January, but fell to $ 62.17.
“Most people have tremors at the moment, it is difficult not to do it,” said Scott Milsten in chief of Elf, who led the HR practices of the company for more than a decade.
But given that most staff are in part owners, he says that leadership does not result from the problem. Instead, the management team is based on communication. This involves reminding employees their purchase options, encourage people to resolve it in the long term and note that the company's remuneration structure also allows workers to buy additional actions at a lower price via a “refresh subsidy”.
“We have sort of erupted internally,” he says. “So, even if it's a time when I think you could find companies somehow withdrawing in silence, we are absolutely in the other direction.”
Milsten says that the company's strategy to communicate openly with employees allows workers to focus on their long -term investments, rather than short -term losses.
“It was difficult for people, personally, to navigate this,” he said. “But [the] The number one priority for me is to make sure that people understand how we sail in uncertain times, because whatever the economic environment, our ability to take market share should always be true and we have shown it.
Brit Morse
Brit.morse@fortune.com
This story was initially presented on Fortune.com
