ESOPs to protect your Employees’ interest in the Covid hit Economy

The world today has been hit by the largest pandemic of the modern times, creating havoc in the economy with the looming uncertainty & fear. As Covid 19 has disrupted business continuity, a need has arisen to recalibrate business strategies and review cost outlays to sustain this contingency. These difficult times call for employers to assure employees that they are valued and their financial interest are safeguarded.

It is well recognized that the human resource are critical for both the success and survival of the business. While many companies have pledged to not lay off their employees, there are also some employers who are considering retaining their employees with pay cuts under these challenging circumstances. There is an adverse impact on employee morale and motivation as not just the present incentives but the future compensation is likely to be affected.

Keeping a view that the Economy is likely to bounce back and retain its glory, it is understood that the business plans are deferred & reshaped but not dissolved under the given circumstance. So, we believe that the companies must relook at the traditional compensation practices in terms of:

  • ▣ Employee Engagement
  • ▣ Loyalty Reward
  • ▣ Cashless Compensation Strategy
  • ▣ Success through Shared Goals

Implementation of ESOP as non monetary compensation plan is an effective way to deal with the issue of retention of employees whilst safeguarding their monetary interest and company plans as-

  • The Employees feel motivated & more affiliated with the organization when they know a strategic plan is dedicated towards protection & development of their interests.
  • The available cash reserves can be utilized in business investments to attain growth instead of operating activities .
  • The company can provide assured reward and create wealth for the employees with imminent growth in Company business and economy
  • With mitigation of risk of losing the human resource assets, the management can devise definite strategies to build a sustainable and successful future for the organization

To know more about ESOP visit, or Contact Ms. Mohini Varshneya, Partner & Head – ESOP Services, 91 9971673332,

Ms. Mohini Varshenya

Ms. Mohini Varshenya

Partner & Head-ESOP Services


+91 9971673332

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