Business comes up with a lot of strategical approaches and features, and one of the very modern features is giving out your stocks to your employee at a better reasonable price which helps the company to save money and marketing. This approach also helps to offer many benefits to the workforce as well. Jeremey Goldstein wrote an article named There Is No Consensus, in this article he gave his analysis on all the factors and reasons that are being considered before implementing this approach on the workforce, and it also comes with a lot of challenges.
In this report, he explained a lot of drawbacks of implementing this approach, a lot of workers don’t opt for this, or even many employers didn’t suggest and gave these kinds of benefit to their employees, as it comes with a lot of challenges and reason which is explained below.
- Stock Value will get low.
The employees want better results and more outcome, from all the money they have put in, and if this option hinders to give employees the better stock, there is no point of even buying it. The stock options are confusing the employees, and they think that their revenue doesn’t balance the amount, from which they have purchased the stock, and so instead of buying it that they need to maintain their assets.
- Fluctuating value.
The other problem that leads to the not implementation of this business approach is inflation. The value of the company, it can decrease and increase with time, because many other features influencing this fluctuation, and for that, the value of the stock can be extremely low for the workers, making it useless for them to buy, it just like buying a casino token that won’t be even used.
- Maintaining Accounts
Sometimes it can be really tough to maintain an account, and it can multiply in value if you have to maintain stock option as well? The employee needs to be extremely experienced and expert to handle all the derivatives and cover all the maintenance costs, that won’t be recompensated if not managed properly. So, they prefer cash instead.
However, these challenges are not the sole reason that can affect the growth. If right strategies and expert people are used, the options and their costs can be ignored. And Jeremy believes that stock options have more benefits than it costs.
About Jeremy Goldstein
He has partnered with a boutique dealing with all problems one can expect from law firms in compensation and their management, and they are offering solutions to those problems. This boutique is named as Jeremy L. Goldstein and Associates, LLC.
Follow Jeremy Goldstein on twitter.