Creating and offering remuneration packages is perhaps one of the most effective ways to encourage existing employees to perform their jobs more effectively while attracting prospective talents. It may also increase their loyalty, thereby lowering the possibility of sudden resignations. Hence, when starting a business, the startup must have a remuneration package for its future employees.
In these cases, there are typically two options to choose from: employee share scheme (ESS) or employee share ownership plan (ESOP). Although the two carry some similarities with each other, they’re two different options.