# Benefits to an employer in providing ESOPs

**URL:** https://community.greythr.com/t/benefits-to-an-employer-in-providing-esops/3321
**Category:** HR
**Tags:** employeebenefits
**Created:** [September 13, 2021, 6:41am UTC](https://community.greythr.com/t/benefits-to-an-employer-in-providing-esops/3321 "2021-09-13T06:41:33Z")
**Posts on this page:** 2
**Page:** 1

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### Author: ![Nitin](https://avatars.discourse-cdn.com/v4/letter/n/d78d45/32.png) [@Nitin](https://community.greythr.com/u/Nitin)
#### Post date: [September 13, 2021, 6:41am UTC](https://community.greythr.com/t/benefits-to-an-employer-in-providing-esops/3321/1 "2021-09-13T06:41:33Z")

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Hi,

How do employer or company gets benefitted by providing ESOPs to employees?

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### Author: ![Bhuvana\_Anand](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/bhuvana_anand/32/4444_2.png) [@Bhuvana\_Anand](https://community.greythr.com/u/Bhuvana_Anand)
#### Post date: [September 13, 2021, 1:00pm UTC](https://community.greythr.com/t/benefits-to-an-employer-in-providing-esops/3321/2 "2021-09-13T13:00:08Z")

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Hi Nitin,

ESOP helps the company to reserve their cash flow by giving out the options; as this involves the employees’ benefits, they will focus on working towards making the company successful. When the options are given by the company and when it gets vested, there is no tax.

Regards,  
Bhuvana Anand