Explaining an ESOP to employees is difficult. The first challenge is that most employees have little experience with stock, and many do not really understand what stock is, where it comes from, and how it gains or loses value. Second, most employees do not understand how business works. This problem is made worse by the fact that most people either think they know more than they do or don't want to admit that they don't know. Third, ESOPs are not intuitive. At the NCEO, we have a hard time explaining ESOPs to business owners and financial reporters, let alone to everyday employees. One reason is that the terms used to explain ESOPs (allocations, leverage, distributions, vesting, fiduciaries, suspense accounts, valuation, and so on) are usually completely new to most employees. Fourth, employees generally are most interested to know the amount of stock they will receive and when they will receive it. Long explanations of this process can make employees squirm in their seats. Communicating ESOPs is not easy, but it is rewarding. One of the goals of an ESOP is to improve company performance by getting participants more involved. Research demonstrates that an effective communications program, combined with an ESOP that is financially significant and an active employee involvement program, results in significantly improved productivity and faster sales growth. This book provides a jump-start to your ESOP communications by giving you (1) chapters about how to communicate employee ownership and financial issues, (2) templates of short documents (included in digital form as well as in the text) you can customize and use as handouts, intranet resources, or newsletter articles; (3) a customizable PowerPoint presentation on ESOP basics; and (4) sample communication documents from ESOP companies in digital form. The seventh edition builds on the success of previous editions by updating existing chapters and handouts; adding new chapters on communicating valuation, communicating the now of ESOPs, and using employee surveys to improve your culture; adding the PowerPoint presentation; and enhancing the selection of sample company materials provided in digital form. The digital version of this book includes both a PDF of the text and a zipped file with the digital supplements. Buyers of the print version of this book will have the digital files (in the form of a single zipped file that you can unzip on your computer to extract the files) automatically added to their cart; after checkout, you'll receive a download link by email, or you can download the file later in My Account under Orders. If you don't have an account, we'll create one for you when you buy this book, and you can reset your password from the login screen to log in.
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