Smart CEOs are always on the lookout for tools that will help attract, motivate and retain top talent, especially in today’s ever-tightening labour market. This year’s survey of Canada’s Fastest-Growing Companies shows that PROFIT 100 leaders consider employee share-ownership plans (ESOPs) part of the solution. Almost half (47%) of them run ESOPs and say they attract and keep workers, facilitate succession planning and boost productivity. (According to the Oakland, Calif.-based National Center for Employee Ownership, employee-owned firms enjoy 4% to 5% annual productivity gains in the first few years of an ESOP, double that of companies that aren’t employee-owned.) That said, a poorly structured or haphazardly communicated ESOP can splinter employer/employee trust and erode your workplace culture.
Originally appeared on PROFITguide.com.