E.l.f. Beauty chief people officer on fairness in employee benefits

Many employers dangle stock options for their highest-tier employees, but more companies, including e.l.f. Beauty, are offering a new carrot by expanding who gets equity in the company.

Founded in 2004, e.l.f. Beauty shot to fame over the last six years thanks to products like Whoa Glow sunscreen and the Poreless Putty Primer, along with its loyal Gen Z fanbase. The company also attributes its growth to its employees and ability to recruit talent consistently, according to SVP and chief people officer Scott Milsten. That starts not only with a foundation based on poreless skin and inclusion for everyone, but attractive benefits.

When TPG Growth acquired the company in 2014, e.l.f. was a team of roughly 150, but it has grown to almost 650 employees across the US, China, India and the UK.

“Everyone is an equity owner and an owner of e.l.f. Beauty,” Milsten told HR Brew. The company implemented the equity program after he took the reins as chief people officer in 2014. “We give stock to everyone, regardless of level, as a new hire, and we also give refresh equity grants,” said Milsten.

He noted that it’s important for all employees to have ownership of the business, no matter where they are in their careers or what country they’re in. Milsten believes that this benefit is an attractive incentive for workers, although the research is mixed on the impact that stock options have on employee recruitment and retention.

Milsten has the same attitude towards other company benefits as well—all employees are under the same single bonus plan and a healthcare plan that begins on day one. It’s all part of the company’s “one team, one dream” culture and is core to Milsten’s leadership philosophy. “We're very transparent. We’re all going to rise and fall together.”