HR Glossary

What is Employee Stock Ownership Plan (ESOP)?

A tax-qualified retirement plan that invests primarily in the sponsoring company's stock, providing employees with an ownership stake in the business without requiring them to purchase shares directly.

Why it matters in hiring

Employee Stock Ownership Plan (ESOP) comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with E

• Education Allowance (UAE)
• EEO-1 Report
• EEOC
• EI - Employment Insurance (Canada)
• eLearning
• Emiratization (UAE)
• Employee Assistance Program (EAP)
• Employee Discount Program

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