To follow up on my blog post from yesterday, let’s talk a little more about company stock option plans. There are many benefits to having this available, as an employee and also as an employer. Essentially, a company stock option plan is an opportunity given by the employer to offer you the right to buy a certain number of shares at an arranged price (usually less than market).
Obviously, the benefit to the employee is the ability to purchase stock in their company for a cheaper price. This gives them the ability to either sell these stocks for an automatic profit or to hold on to them in hopes that the company will have a financially healthy future. The employee also gets the opportunity to hold some ownership in the company and feels more connected with the entity that they work for, enticing productivity.
For employers, stock option plans lure in a larger and more talented pool of candidates to fill in your office chairs due to the benefits of owning stock. Not only that, but offering this type of plan will attract staff to stay long term, keeping your talented employees in your office and out of your competitor’s. And because your employees now have some ownership in the company, they are more dedicated and motivated to make the company successful. Stock is a measure of a company’s success, and if that stock goes up, payouts go up as well.
With that said, the cost efficiency of a company stock option plan can bring smaller companies up to par with the benefit programs given by larger organizations.
So, in addition to our very own company stock option plan, check out the other great perks of working for SmartFile. We promise you won’t be disappointed.