How to Convince Employees to Buy Company Stock

1). Hold a seminar for your employees explaining the benefits of owning company stock. Show them how they can make more money for themselves when they make the company more profitable. Create a hypothetical revenue scenario that illustrates how their stock will rise with increased profitability.
2). Hire a financial planner or train your human resources personnel to meet with each of your employees one on one. They can examine each employee's personal-finance circumstances to see how much stock he can afford to buy and then create a plan to help him begin.
3). Publish a newsletter showing the impact of employee stock purchases on the share price. Employees who can see the price rising as a result of employee participation may be more inclined to join and start buying.
4). Establish an employee stock purchase plan (ESPP) that allows employees to buy stock at a discount. This type of plan usually permits automatic stock purchases through a payroll deduction plan. Most stockbrokers and many financial planners know how to do this. Your accountant or tax adviser may be able to do so as well.
5). Establish an ESOP plan if your stock is not publicly traded, or consider offering stock options if you have a large company that is traded publicly. ESOP plans can have privately held stock and provide retiring employees a means for selling their shares. Stock options allow both rank-and-file and executive employees to purchase and sell company stock with special tax advantages.