Use Case · For the CHRO & Equity Admin
Traditional ESPPs require payroll deductions. The workforce most companies most want to reach, contract, hourly, gig, global, doesn't have that relationship. Managed Contributions™ by Carver Edison replaces payroll deductions with bank and card payments, so eligibility becomes a policy decision instead of a payroll constraint.
The Problem
A growing share of the workforce - contractors, hourly, gig, cruise crew, globally distributed - sits outside the traditional payroll relationship. Companies that want to extend equity to those populations hit a structural wall: the ESPP itself was built on payroll deductions, and the payroll relationship isn't there.
Traditional ESPPs collect participant contributions through pre-tax or post-tax payroll deductions. Workers who don't run through W-2 payroll - contractors, agency hourly, gig, certain international populations - are structurally excluded from the plan, regardless of whether the company wants to include them.
Non-payroll workforces are expanding across most large employers - franchise networks, hospitality, logistics, healthcare, and global operations. The gap between who the company employs and who the ESPP can reach widens with every hire outside W-2.
Companies that try to extend equity to non-payroll populations end up with parallel processes - manual invoicing, separate contracts, bespoke administration. The lift is unsustainable and the experience for participants is second-class.
The Mechanism
Traditional ESPPs require active payroll deductions, which makes the program legally and operationally available only to your W-2 workforce. Managed Contributions™ collects ACH and card payments directly from participants, replacing the payroll-deduction requirement entirely so the plan can extend to any employment relationship your company chooses to include.
Traditional ESPP
Managed Contributions™ by Carver Edison
The Outcome
Every employment relationship at your company can participate in the same plan - W-2, contractor, hourly, gig, or global - through the same payment mechanism.
Illustrative example
For a 100,000-person workforce with 40% outside the W-2 payroll relationship.
Today
With Carver Edison
Methodology: Managed Contributions™ replaces payroll deductions with bank account and card payments, so eligibility becomes a comp-philosophy decision instead of a payroll constraint. Contractors, hourly, gig, cruise crew, and globally distributed employees all participate in the same plan, on the same terms, through the same payment mechanism.
Outcomes are not guaranteed and vary based on company-specific factors and market conditions.
Related Outcomes
Designed to decrease stock-based compensation by as much as 85% on the same grants.
See use case → 03.Built to extend equity participation across your broader workforce with no impact on P&L.
See use case → 04.Built to give employees a meaningful raise in real economic value without a budget increase.
See use case →Book a 30-minute walkthrough with our team. We'll model the eligible non-payroll population at your company and the participation curve we'd expect.