Employee Stock Ownership Programs
Employee Stock Ownership
Employee motivation practices have significantly developed in accordance with the developing needs of companies to have skilled employees performing better, and the needs of employees of improving their social standards. Motivation strategies are not limited to financial bonuses, but also provide stock ownership programs in the case of listed companies. Specialists in the field have identified such programs to have an important effect on employee loyalty.
Employee Stock Ownership Programs
Employee Stock Ownership Programs are employee benefit plans in which companies provide their different types of workers ownership interests in the company in case. These plans work by the employer allocating a certain number of stocks to each employee in accordance with their salary, but also with other performance assessment criteria. However, employees are not allowed to sell their stocks as they are held in the company's ESOP trust until they leave the company or retire. This is intended to increase employee engagement and to determine employees to perform better.
Basically, by providing employees company stocks, the company becomes more of an individual property of the employee. These employees own stocks of the company which determines them to increase their adhesion with the company, but also to feel that they are working for themselves. If they perform better, the company performs better, and the value of its stocks increases. This is a good way of ensuring that employees have the company's best interest in mind when developing their work activity.
However, employee stock ownership is not a modern invention in the U.S. During the mid 19th century, U.S. corporations leaders have identified the fact that many of their loyal employees that...
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