Share plans have become ever more popular and have been adopted by companies globally as a way to improve employee engagement, retention levels and incentivise the workforce for greater productivity.
The London School of Economics (LSE) carried out research to explore the behavioural outcomes that share plans evoke. The study involved employees of Computershare and their global share plan for all eligible employees. The research was carried out via a web-based survey, which was completed by more than 3,800 employees. In all, the survey was made up of 74 questions and cross-checked the behaviour of participants in order to obtain insightful results.
The research revealed four main findings:
- that share plan members work harder;
- loyalty is increased and they stay with a company longer;
- they take greater interest in the finances of a company; and
- that all of these behaviours are more pronounced amongst share plan members with greater contributions and larger share holdings.
Link to full article: Research into the value of share plans
With share plans offering companies a form of remunerating their employees that often provide tax efficiencies and other financial benefits, this research helps substantiate the socio-economic reasons for the implementation of share plans.
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