The ultimate goal of worker equity is to create an ownership mindset among workers. When employees, contractors, advisors, community members, and other stakeholders feel like they're an owner, they are more likely to care a lot more about the long-term well-being and goals of the company.
However, many worker equity systems—especially stock options—are unable to achieve this. Traditional equity plans are oftentimes confusing, complicated, and even demoralizing because workers don’t have a clue on what it is in the first place. Hence, these older equity systems accomplish just the opposite.
Workers need to understand the equity plan itself and trust that they will get their fair share if the company succeeds.
Another way to think of it is: Are the workers getting emotionally invested? Are they thinking about the problems of the company and of creative ways to solve them? Are they going beyond what they are expected to do?
If your answer is yes, then your worker equity system is effective.