mgt student
Employees Stock Options (ESOPs)
This is the latest trend in the industry. This is a very important tool in knowledge intensive industry like Information Technology etc. Here the greatest assets are the employees and their knowledge. The organisation loses on this if the employee were to leave. So in order to retain the employees they are offered direct participation in the form of shares of the company. This is called as Employee Stock Options(ESOPs).
Human Resource Accounting
This is a concept where employees and their knowledge are treated as assets of the company and a value is attributed to it. This value is also reflected in the balance sheets of the company.

From India, Mumbai

I like to add up with the current information
there are various types of ESOP's which differ from organisation to organisation.
there is an website which gives information about the employee stock options.
with regards

From India, Madras

Student - HR professional
esop may be successful at point of time. but it was not consider as great strategy for retention and motivation for lower level or lower exectcutive level./ where the salary they get itself little. it may be good one for top management people.. so esop is called as a fab by many articles...
but human resource accounin a is a new concpet to tell that their employees are their greatest strength.....

From India, Vadodara

HR Consultant
I am familiar with Employee Stock Option Plans (ESOP) insofar as a client used it as a proposal during labor contract negotiations. It was designed to be an incentive, and compensation, where the company was struggling with cash flow and needed the employees to be more innovative and efficient.
Unfortunately, the employees ("new owners") did not see the benefit of ownership and continued in their old ways. After two(2) years, the company went bankrupt.
ESOP's used to be a "hot button" in the States, but I don't hear much about them anymore.

From United States,
This discussion thread is old and is closed for new comments. If you want to continue this discussion or have a follow up question, please post a new thread. Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 Cite.Co™