Employee share ownership plans (ESOP), the benefits to your business.

Employee share ownership plans (ESOP) enable SME businesses to offer an incentive to their employees, by providing the access to beneficial ownership in the business they work for and, therefore, access to the growth and its ongoing success.

There are numerous benefits of introducing an employee share scheme into your business. Staff retention, team engagement and attracting new talent which in turn should stimulate business performance, as they are benefiting from a profitable outcome of the business.

They also build a better working culture as employees are invested and start to think like a business owner, as well as forming part of your business’s succession plan.

There are also tax benefits of introducing the ESOP into your business and, when structured well, can be self-funding with tangible financial incentives for your staff. 

Traditionally Australians have been slow adopters of the employee ownership model. However, this is a strong opportunity to add into your succession plan, to show value to your employee and ensure that you are all striving towards a common goal.  

ESOP's are transparent and have a lot of flexibility in terms of set up, with specialist experts that can assist in developing this within your business. So, you must ask yourself how can this scheme benefit your staff and business? 

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