ESOPs are a form of aligned incentives. They create ownership interest among employees so that they work together for the common goal of company growth. This leads to a highly motivated workforce that wants to achieve more so that their organization’s share value appreciates. All other benefits that a company enjoys are related to the same fact. Researches have shown that after exercising their ESOPs, employees show more loyalty to the company. They work in harmony to reduce wastage in the organization and brainstorm on finding new ways of increasing productivity. ESOPs also increase the employees’ trust in the management and the company itself.
