Let Your Employees Grow With You in the new year 2015

Celebrations are taking place around the World to mark the start of 2015. We are on a welcome note of another new beginning with an excitement, high anticipation and expectation for the months to come. The beginning of a new year can get you inspired to make changes and to do things differently.

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Even in Indian context and from a commercial perspective, bang is expected in the economic activities in the country under the charge of the new elected government of Shri Modi. In a recent article, World Bank said that, ‘Indian economy, which accounts for 80% of South Asia’s output, is set to grow by 6.4% in 2015-16 as against 5.6% in the year 2014-15. India is benefiting from a “Modi Dividend”', the Bank said.

Even from the human resource angle, according to various researches and reports, it is expected that there will be an increase in jobs and work opportunities this year. According to researchers, there will be a rise when it comes to fresher getting hired. It has been predicted that there will be an increase of almost 18% in the hiring numbers compared to 2014. This signifies upcoming opportunities for both, Corporate and individuals who are willing and capable.

Since the evolution of Corporate Sector, businesses and employees have gone hand in hand. Growth of a business is directly linked with the growth of its employees and vice versa. Employees are the building blocks of any business, so they need to be the part of growth and sharing. Likewise growth of business is a must for Employee’s growth as well. In today’s modern business world, human capital has become one of the most important resources. The enterprises are, therefore, more than ever interested not only in retaining their employees but also for attracting the best talent from outside. Motivation is strongly connected with employee engagement and the main cause of good or bad performance and overall operation of the company.

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Everyone is paid for their work, but this can accomplish only the basic needs. It has to be kept in mind, that appreciation is a fundamental human need. Human beings respond to appreciation expressed through recognition of their good work because it confirms their work is being valued and it satisfies their self-esteem needs. When employees and their work are valued, their satisfaction and productivity multiplies, and they are motivated to maintain or improve their good work.

When it comes to rewarding your employees, cash is the king, but only for a short term. Only cash emoluments are not a long-term motivator. Companies should aim to find ways to engage the employees with them rather than focusing only on paying them off. It will result in more loyal, harder working employees. In the present corporate environment one of the most effective alternative tools for rewarding Employees that has emerged is participation in Equity. It is a good deal for Employees as well as Organizations. Such kinds of plans create a sense of ownership among Employees as they become partners in growth of the Organization. On the other hand, sharing in Equity will save cash outflow from the Company and will also motivate the Employees to work effectively and efficiently in order to enhance the profitability of the business.

Making Employees a stakeholder in the Company’s growth is not a herculean task. Through proper planning and preparation of a well devised scheme, Companies can give options or units to their employees, which will entitle them to a certain number of shares of the company at a per-decided price. In common parlance, such shares are called Employee Stock Option Plans (ESOPs). ESOPs are an incredibly effective tool that can simultaneously benefit an Organization, its Shareholders and its Employees.
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