Employee engagement boosted by share ownership

Thursday, 19 August 2010

Employee engagement levels can be boosted by offering shares in the company to workers, it has been suggested,Chartered Institute of Personnel and Development performance and reward advisor Charles Cotton claimed that staff can become more concerned with the long-term health of an organisation if they hold a stake in it.

"Employees, because they have these shares, are therefore more interested in what makes the shares go up or down in value - so they become more business-aware," he explained.

Mr Cotton also suggested that staff who hold shares in their company will take a greater interest in wider matters, such as the conditions of the market and macro-economic issues, and work harder to prevent them from damaging the firm.

In addition, the expert said that owning shares makes staff feel "part of the firm" and increases the chances of them understanding and supporting its corporate goals.

According to the Kelly Services Global Workforce Index, 53 per cent of UK workers think they would be more productive and engaged if they could own a stake in their company or share in its profits.

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