When a professional is looking for a job, they often look at the benefits that a company provides to their employees. This is a way to judge whether or not they want to join that company when a job offer is made. Of course the overall salary of a job is important, but benefits are a big deal as well. This can include things like health benefits, on-site parking, on-site gym, 401k or an employee stock purchase plan. Allowing employees the opportunity to purchase stocks can help increase the overall amount of money that they are making each year.
An employee stock purchase plan allows an employee the opportunity to be part of a company’s ownership. This makes an employee feel like they are an important part of a company’s success. When you have a stock purchase plan being offered, employees tend to be a lot more involved, they work harder and they value their job more. If the company doesn’t succeed, then this isn’t going to bode well for the stocks that an employee has.
Employees investing in stock, increases the overall equity of a company. A stock purchase plan is covered under Section 423 of IRS code that relates to employee stocks. This is the situation as long as stocks are not taxed when they are purchased originally. Having a savings plan of this sort in place can really help an employee progress with their career. They’ll want to stick around awhile and invest time in their career with a company. To get daily updates follow our Facebook page.