Recruiting the best talent can be a very tireless undertaking for many human resources areas in any companies today. Because of the ever-present competition between companies and corporations in the same or similar industries, type of candidates hired can make a major difference between operating a successful company and struggling to meet goals and objectives. As a result, companies are taking these areas very seriously.
Revisiting Compensation Plans
With all of this and more in mind, as many companies begin to devise their next compensation plans for the upcoming years, it is critical that they keep these and other related factors into consideration. Specifically, if these companies are intending to stay in business with large and growing profits each year. So, for any organization that may be in the midst of developing, revising and updating their compensation plans for all of their employees, each sector of the compensation package must be revised based on the merits of each. To that end, here is one of the basic elements of a company’s compensation plan, that must be revisited and taken care of with an informed decision.
Traditional Stock Options vs Knockout Option
Typically, when an employee is hired by any company, there are several different key things that they will be looking for in their new hire compensation package that they are provided with. For most people, aside from the salary amount that the company will be offering, they are usually looking for other different valuable perks like stock options. However, as things are starting to swiftly change within corporations, there is advice that is now offered that provides more details on what should be done. For instance, Jeremy Goldstein is now covering topics online that discusses how stock options are now being replaced by Knockout options.
According to Jeremy Goldstein, one of the primary reasons for the switch in option plans is to save the company money. This is because a knockout option is supposed to be a simpler plan that can be offered without the drawbacks that the traditional stock options provide. For instance, one of the main drawbacks of the traditional stock options is that the employees are becoming more hesitant about the actual value of their stock options, specifically it relates to their company’s stocks going up and down due the competition that it is now experienced in the stock market, based on Jeremy Goldstein and this teams’ findings.
Minimizing Employee Risks and Flexibility
While Jeremy Goldstein is currently pointing out the drawbacks of traditional stock options, he is also helping to identify the benefits of the knockout options. One of the most important is eliminating the risks that the employees take with the company’s stock option. Therefore, the risks itself for holding onto a certain amount of stocks each year can be minimized. It is also important to note that the traditional stock options are less flexible than the knockout options. This is because, according to Jeremy Goldstein, Knockout options will allow every employee to receive the same value of knockout options. Learn more: http://www.bizjournals.com/newyork/potmsearch/detail/submission/6423046