At Esco Retail, all employees are constantly driven to work hard. The company places maximum emphasis on stocking high quality goods and providing high quality service to retain the edge they have in the retail industry. To promote organizational commitment further, the company incentivizes employees by enabling them to purchase company shares at below-market prices as a part of their benefits. This mode of providing incentives represents the use of ________.
A) flexible benefits plans
B) merit-based plans
C) modular plans
D) employee stock ownership plans
E) core-plus plans

Question

Quizplus · Accepted Answer

Under the employee stock ownership plan (ESOP), employees acquire stock, often at below-market prices. Research on ESOPs indicates they increase employee satisfaction. But their impact on performance is less clear. ESOPs for top management can reduce unethical behavior.

At Esco Retail, All Employees Are Constantly Driven to Work