Startups are leading the rewards and remuneration game by leveraging ESOPs (Employee Stock Ownership Plans) in order to hire highly skilled talent. However, these new companies lack in providing a clear framework for these ESOPs and that limits them from retaining skilled employees.
LetsVenture, a platform designed for angel investors, is now working on building a framework that gives all startups a standardized set of rules and regulations. Moreover, an ESOPs plan will help global tech firms to become transparent with their employees. It is crucial for employees to also understand what their stock options are, especially in the event that they wish to liquidate them at a certain point.
Unicorn firms and soon-to-be unicorns will be the leaders of the talent space in the future of work. It is crucial that global talent looks at Indian startups as a workplace where they can grow and thrive, according to Ganesh Nayak, Director, LetsVenture.
At present, there aren’t any standardized rules for offering ESOPs to employees. Lets Venture will be looking into the best practices that can be adopted on a large scale and would be easy to implement, especially when it comes to offering the options of liquidity to employees who have already dedicated about five-eight years of their career in Indian startups.
The platform is in the design phase, at present.