Advantages of employee stock ownership plans Paper

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24-7-custom-writing-serviceAdvantages of employee stock ownership plans Essay

Advantages of employee stock ownership plans Assignment

 

 

            Recognizing employees for a job well done plays an important role in the motivation of workers. Motivated employees work more efficiently and productively for the benefit of the company. Good performing employees are rewarded through various methods, one of which is the employee stock ownership plan. This paper explores this rewarding technique by paying emphasis to the advantages for the employees and employer.  

            An employee stock ownership method is a rewarding means where a company establishes a trust by transferring its own shares or cash to buy shares for its employees. As such, employees gain from the future wealth that the corporations will generate. It facilitates motivation amongst employees and ensures that they have wealth even after retirement. The employee stock ownership plan has benefits for the employees and employers (Dessler, 201).

            For the employees, an employee stock ownership plan benefits them by making them shareholders of the company. As such employees have a say in the decisions that the management team makes. These decisions are for the interest of the shareholders as a group. The management team exercises participative leadership allowing the opinions of these workers to be taken into consideration (Dessler, 201).

Secondly, this rewarding method allows employees to be shareholders after retirement. They have claims to the future income that the company generates. Unlike other recognition techniques, this method creates wealth for employees during and after employment. Thirdly, this stock plan acts as a motivator for workers to actualize their career-based dreams. To be recognized as a benefactor of the stock option plan, an employee has to have been loyal to a company for a significant amount of time (Dessler, 201). What’s more, with the rise in ranks in the company, the benefits increase thus motivating employees to work harder and ensure efficiency in their tasks.................GET A PLAGIARISM FREE COPY