Companies hire and manage top talent by using ESOP (Employee Stock Option Plan)! However, it’s an employee benefit plan that encourages employees to take ownership of shares at a set amount.
Typically, companies offer an Employee Stock Option Plan for employees to ensure that they make them remain with the company for a longer period. It encourages employees to be more productive and to show their commitment to the business.
Imagine that an employee is given 400 shares. At the end of each year, 100 shares are granted vested. The value of the shares rises with the value of the business. It also keeps an eye on the rate of attrition.
Benefits of Employee Stock Option Plan
Attract top talent
It is possible that you will not be able to pay the current pay, however, the prospect of a share within your business will be enough to attract top talent.
The more successful your company is, the more employees you have on your team will be the money they deserve. It’s the best way you can encourage your employees.