Profit Sharing Boosts Employee Productivity and Satisfaction

Harvard Business Review

For instance, individuals who become part of all-employee share ownership plans (ESOPs) are given tax breaks to own their company’s stock. The introduction of ESOPs changed the equation by giving employees a financial stake in their firm that came with voting rights and opportunities to participate in company governance. Juan Díaz-Faes for HBR. We all know that people respond to incentives.

Huawei: A Case Study of When Profit Sharing Works

Harvard Business Review

At Huawei’s inception, Zhengfei designed the Employee Stock Ownership Plan (ESOP). The structure of the ESOP is based on two important premises. Huawei’s ESOP can satisfy both human needs.

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Treat Employees Like Business Owners

Harvard Business Review

And companies — except for the very smallest — can implement an employee stock ownership plan (ESOP), often funded through borrowing. Employee loyalty and engagement are hot topics, and for good reason.