The bank whose shares are owned by a trade union or trade union that automatically every member of the trade union or labor union also becomes a shareholder of the employee’s bank.”
What is an Employee Bank?
Employee Bank or labor bank is a bank whose shares are owned by a labor union, employees, or labor union which automatically every member of the trade union or labor union also becomes the shareholder of the employee’s bank.
What is meant by shares owned by a union is an ESOP or employee stock option program, a program that entitles employees to share ownership. The company’s share ownership program in Indonesia is known as the employee stock ownership program (PKSK). The company’s first share ownership program with ESOP was in America, around the 1950s.
The purpose of the Employee Bank
- How to Retain Employees. Company stock owned by employees is thought to be able to retain employees (aka minimizing employee turnoveror turnover ). Employees who own company shares are likely to have a sense of belonging and ultimately cause enthusiasm at work.
- Form of Appreciation for Employees. The expression that shows that companies must give gifts to employees who excel. One form of gifts offered by the company is the ownership of company shares.
Ways That Employees Can Have Stock in the Company
There are 3 ways of ownership of company shares by employees, as follows:
The giving of shares is a grant from the company to employees. Share giving is a type of transfer of company stock ownership with a simple ESOP. Generally given to key people in the company as a form of employee appreciation or retention.
Employee Stock Purchase Plans
This type allows employees to buy company shares with certain types of benefits, such as lower prices. Employees are allowed to reject the stock purchase program if it feels unprofitable or there is a better offer.
Stock Option Plans
Generally, companies will give the option to employees to buy company shares at a certain price and for a certain period.