What term describes the practice of sharing ownership with employees to incentivize them?

The term that best describes the practice of sharing ownership with employees to incentivize them is the Employee Share Ownership Scheme. This concept revolves around granting employees shares in the company, which aligns their interests with the company's performance. When employees have a stake in the business, they are often more motivated to work towards its success, as they directly benefit from the company's profitability and growth.

Such schemes can enhance employee morale, boost productivity, and reduce turnover, as employees see themselves as part-owners and are likely to be more invested in the company's long-term goals. Additionally, this method fosters a culture of shared responsibility and engagement among the workforce.

In comparison, while profit-sharing focuses on distributing a portion of the company's profits to employees, it does not involve offering them ownership. An Employee Stock Option Plan allows employees to purchase company stock at a predetermined price, but it does not inherently provide immediate ownership rights. Employee Benefits Plan encompasses a broader range of non-wage compensations and does not specifically pertain to ownership stakes. Thus, the Employee Share Ownership Scheme distinctly captures the essence of incentivizing employees through shared ownership.