Share plans boost loyalty - it's official
David Woods, December 04, 2008
More than eight out of 10 employees (82%) in employee share ownership schemes feel loyal to their organisation compared with 70% of non-participants.
The study of share incentive plan (SIP) members and save as you earn (SAYE) plan members by HM Revenue and Customs (HMRC) found nearly half (48%) of SAYE members and 45% of SIP participants said the provision of the scheme encouraged them to stay with their current employer.
Almost all (99%) of SAYE members said they took part because it was "a way to make money" and 94% of SIP members said it was "an easy way to save".
Employers use the scheme to enable staff to participate in the organisation with 34% of SAYE and 30% of SIP employers saying this was their main reason for establishing share ownership.
Commenting on the findings, Malcolm Hurlston, chairman of the Employee Share Ownership Centre, said: "The results are encouraging and confirm what common sense already dictates about employee share ownership schemes. SAYEs and SIPs are an effective means of motivating employees and encouraging loyalty to the company. We are calling on the Government to work with our members on how to move these schemes forward."