Benefits of Employee Stock Ownership
- Employee stock ownership has many benefits.Stock Market Crash image by Paul Heasman from Fotolia.com
Stock ownership can be a powerful motivator, as well as a way to make a significant profit over the long run. For employers, encouraging employees to purchase stock in the firm can be a very valuable step. Employees who own stock in the company are directly impacted by the financial fortunes of the company, and that can impact everything from their performance to their attitudes. - For many workers, the numbers on the company's quarterly earning statement are meaningless. In fact, some workers might not even know how much the company makes or how it gets its money. Owning stock is one way to change that attitude and get workers interested in the fortunes of their employers. When employees become part owners of the company they work for, they tend to pay more attention to how the company is doing, and they may even be more willing to go the extra mile to make sure the firm achieves its financial goals.
- Companies of all sizes need to find creative ways to reward their most valuable employees, even in the face of competition from other firms who may be trying to woo them away. Offering stock grants and stock options to those top achievers is one of the best ways to foster company loyalty and reward those top achievers. Owning stock in the company they work for is an excellent motivation for employees from all levels, from entry level positions to members of the management team and executive suite.
- One of the most significant benefits of employee stock ownership is the ability to make extra money. When employees own stock in the companies they work for, they also have the ability to participate directly in the success of the company. Employees who are able to profit from a rise in the stock price can set the money aside for retirement, or simply use it to enjoy a better current lifestyle.
