The Productivity Effects of Employee-Stock Ownership and Bonuses

The Productivity Effects of Employee-Stock Ownership and Bonuses
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Abstract
This research paper explores the impact of employee stock ownership plans on an organization’s overall operations. Based on research findings, employee turnover, employee motivation, and job commitment are the key variables underpinning employee stock ownership plans. Based on research findings, managerial implications are critical in expediting the attainment of set goals. The paper will provide rigorous evidence on the implication of bonuses and ESOP incentives on employees’ overall productivity and motivation. Organizations can utilize the findings by making a relevant decision regarding involving employees in ownership of an organization. Considerably, employee stock ownership plans (ESOPs) are effective strategies for helping organizations obtain the needed capital for investment. The government and policymakers alike encourage firms to adopt ESOPs to accommodate employee’s investment in their stock.
Keywords: Employees stock ownership plans, incentives, motivation, productivity, alignment of interests, decision making, and collaboration
The Productivity Effects of Employee- Stock Ownership and Bonuses
Introduction
Organizations worldwide utilize Employee Stock Ownership Plans (ESOPs) as one of the practical tools of expediting corporate efficiency and growth. Since the 1980s, most companies have realized significant growth in information technology. Profit-sharing and employee stock ownership plans are significant factors that have expedited the attainment of the set goals. In the current era of increased business competitiveness, profit sharing, especially employee stock ownership plans (ESOPs), have spread in highly industrialized and industrializing countries from a global perspective. The two aspects have gained popularity over the recent decades, resulting in accumulating theoretical and empirical research of the two incentives. The prior research in the area focuses on the impact of employee stock ownership and profit-sharing on productivity.
The creation of Employees Stock Ownership Plans (ESOP) is one of the practical aspects of an organization, especially in the current era of the proliferation of new technology forms. The research on the impact of bonuses and ESOP is critical for stakeholders, market regulators, and various institutional investors. According to Athar (2020), the development of regulation and policy enhances an investor’s level of confidence to invest in the stock market. The research will be critical in helping institutional investors and market regulators in expediting investment decisions. The study can help investors decide on investments, portfolios, and other strategies for obtaining an investment base. The impact of the Employee Stock Ownership Program is critical in expediting effective economic solutions since employee stock proprietary programs play a crucial role in stimulating economic growth. Therefore, research that focuses on developing job placement is critical in facilitating the growth and expansion of organizations.
Compensation systems and incentives have been shifting rapidly from a fixed wage contractual payment...