How Elf CPO communicates with employees through fare uncertainty

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Cosmetics Powerhouse Elf Beauty Inc. offers an unusual compensation structure to employees.

Unlike other organizations, the company gives almost all its own 600 employees at the time of hiring, as well as new grants each year. This means that regular employees outside Suite C, which may not have had the opportunity, can take advantage of the type of stock options most often reserved for the upper management.

But Trump’s latest tariff ads have turned this compensation strategy into a human resource problem. About 80% of the company’s products, including lip oils and foundations, are manufactured by third -party vendors in China, according to ELF, which became a significant point of concern when Trump announced a 145% Levy about goods from this country.

This means that while some North -Americans may be concerned about how these rates will affect the general economy and the hiring environment, ELF employees see that their actions options weigh for commercial uncertainty. The price of ELF shares was $ 133.91 in January, but has dropped to $ 62.17.

“Most people have Jitters at the moment, it is difficult not,” says ELF’s people, Scott Milsten, who has directed the company’s human resources practices for more than a decade.

But because most employees are the owners, he says leadership does not follow the problem. Instead, the executive team is inclined to communicate. This involves reminding employees of their shares, encouraging people to house it in the long term, and point out that the company’s compensation structure also allows workers to buy additional actions at a lower price through a “soda subsidy”.

“We are an overall, internally,” he says. “So, although this is a time when I think you could find companies that retire in silence, we go absolutely to the other side.”

Milsten says that the company’s strategy of communicating with employees allows workers to focus on their long -term investments, instead of short -term losses.

“It has been difficult for people, personally, to browse it,” he says. “But () the number one priority for me is to ensure that people understand how we are navigating for uncertain time, because regardless of the economic environment, our ability to take market share must always be true and we have shown it.

Brit Morse
brit.morse@fortune.com

This story originally presented to Fortune.com

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