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How to use ESOPs as an Employee Retention Tool

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One solution for both challenges is an employee stock ownership plan (ESOP).

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Employees are the company's most important asset. To find an A-Team player is even more difficult. Especially in start-ups and SMEs, we may not have a huge amount of funds to pay the employee’s expected salaries. Is there any way that we can retain talent without increasing the budget for salaries?

Employee Stock Ownership Plans (ESOP) are mechanisms devised for companies to offer their employees the right to buy shares in the company at no upfront cost. They can also be a specific percentage of shares.

But how does ESOP work? Is Employee Ownership right for your business?

We are thrilled to have Andy Lee, Co-founder of Sprout, share his experience in how to create a win-win-win solution (stakeholder, employee and employer) for the company by ESOP.

If you are a member of the C-suite or Board, or if you are in a managerial position. This is the chance for you to reward and motivate key and loyal team players to stay in the company for the long term.

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