Evaluation of ESOPs as a reward management pr...

Evaluation of ESOPs as a reward management practice in the Indian IT industry

Author Name : Dr. Atul Kumar, Dr. S. G. Walke Dr. Mahavir M. Shetiya

ABSTRACT Employee Stock Option Schemes ("ESOPs") quite unheard in India are now gaining popularity significantly, particularly during the previous few years. Confronted with the issue of poaching and brain drain, the software industry particularly has understood the significance of employee stock options to recruit and retain the best employees. In facts, new vistas in this field have opened up, parent organizations particularly those situated in the United States have discovered employee stock options a helpful human resource development tool. Cross border stock alternative plans, whereby Indian occupant employees, take an interest in global stock alternative plans of their parent company (or any foreign company of a similar group) are presently stylish. This study looks into the effectiveness of ESOPs as a reward management practice in the Indian IT industry. 100 IT employees spread all over the country were sampled for this purpose by way of a small survey. Their opinion was taken to check if ESOPs have been effective or not. Employees widely agreed that ESOPs have been highly effective as a reward management practice. Other industries can also adopt ESOPs as an effective reward management practice.