| All effective employee motivation programs depend | | | | do not have to wait for management approval, the |
| on including an employee motivation reward system. | | | | price of the stock reflects how well the company is |
| People like to be rewarded for a job well done, or for | | | | doing in its market. |
| effort put in above and beyond the call of duty. To | | | | Why is an employee stock program such a good |
| effectively motivate employees they must be | | | | employee motivation reward? It goes back to |
| rewarded. However, these rewards must be based | | | | motivating employees. They need to feel that are part |
| solely on job performance if they are to successfully | | | | of the company's mission and vision in order to want |
| motivate. | | | | to perform well. The best way to make them part of |
| One of the best models of an employee motivation | | | | the big picture is to give them a piece of the company. |
| reward program based on employee performance is | | | | Now they own a part of the mission and vision. Now it |
| an employee stock program. Many companies have | | | | matters to them that the company does well because |
| adopted this business model and turned over the | | | | they have a tangible piece of it. Employees of |
| company stock (or a large portion of it) to the | | | | companies that offer this type of program have a |
| employees. When the employees own a piece of the | | | | lower turnover rate than those who do not. Therefore, |
| company, they have a vested interest in seeing it | | | | it makes sense to implement this type of program |
| perform well. Nothing is more directly tied to proper | | | | when possible. |
| planning and management of a company than the | | | | How do you set up a stock program as an employee |
| price of the stock. Good business decisions, good | | | | motivation reward? You need to check with your legal |
| marketing and sales, and good customer service | | | | advisors and tax advisors. This may change the legal |
| should see a rise in the price of the company's stock. | | | | structure of your company so it is very important to |
| This in turn gives an automatic bonus to the | | | | get really good advice before you make any radical |
| employees as their net worth has just increased. They | | | | decisions. |