Can you increase productivity and maximise employee retention asks Mike Denehey, Adviser.
An innovative way to gain productivity and retention benefits is to invite employees to invest in your business through a share plan, also known as an Employee Share Ownership Plan or ESOP.
ESOP’s are increasingly being used by business owners who want to gain immediate term productivity and engagement benefits while providing longer-term stability for their business.
An ESOP is a mechanism to allow employees to own a share of the company they work for.
Advantages for you as the business owner;
- You can attract and retain high calibre staff by offering a direct stake in the business
- When you want to move on from your business an ESOP can be an effective and efficient way to transfer ownership
- Save tax by making payments to the ESOP that are deductible
Advantages for your employees include;
- Providing a savings vehicle where they can accumulate savings, acquire and hold shares.
- Creating a sense of community as employees feel more committed to ensuring the business thrives
- Save tax by purchasing shares from pre-tax dollars
One of the encouraging things we see with an Employee Share Ownership Plan is employees beginning to think and act like business owners. Imagine if instead of just you, you had a team of key people within your business helping you achieve a win-win-win outcome for you, the business and them as employee-owner.
Mike Denehey, Adviser suggests that as a business owner, you are probably run off your feet and in the whirlwind of running your business, working in your business, and not having time to work on your business. Am I right? Please reach out to chat more about how we guide business owners to ultimately achieve their business and personal goals. Connect with Mike on LinkedIn