Is Now the Right Time To Invest in Your Company’s Employee Stock Purchase Plan?

After seeing an unusually high number of people leaving their current jobs last year, businesses are desperate to hold onto some of their most significant assets.

One unique benefit many publicly traded firms now offer their workers is access to programs to become a shareholder in the company, often referred to as Employee Stock Purchase Plans (ESPP).

Employee equity options, are an attractive investment, but it may not be enough. Business owners surveyed by Morgan Stanley willing to trade ownership for loyalty are also sweetening the deal by offering shorter or more flexible vesting schedules and increasing employee education and communication.

While Employee Stock Purchase Plans are not new, the trend toward offering employees equity appears to grow further.

And with the stock market down considerably this year, you may be able to purchase stock in your company at a steep discount.

The idea behind ESPPs is simple – to give employees the opportunity to profit from the firm’s success and participate in its growth. The thought is that employees who are also owners will be better at their jobs and more dedicated to the company and its success.

Participating in an employee stock purchase plan can be a smart way to build your investment portfolio.

The key is to understand both the potential advantages and the possible pitfalls of these popular programs.

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