Study Finds ESPPs Motivate Employees
October 27, 2009 (PLANSPONSOR.com) - Recent research
by Computershare and the London School of Economics found
employees in Employee Stock Purchase Plans (ESPPs) work
harder and stay with their employer longer.
According to the survey results, employees in the U.S.,
UK, Australia, and South Africa all said the ESPP had a
motivational impact on them. Also, U.S. employees
participating in an ESPP said they were more likely to work
beyond their contractual hours and to monitor a colleague's
work and say something if he or she is not doing a good
job.
In the U.S., 57% of members of an ESPP work overtime in
a given week, versus 41% of non-members.
In addition, the survey found U.S. workers in an ESPP
were 11% less likely to quit their jobs, than those not in
an ESPP. ESPP participation also decreased the likelihood
of quitting among workers in the UK and Ireland.
In Australia and South Africa, plan participation
reduced the likelihood of quitting among those making
higher monthly contributions.
The percentage of plan members that took an interest in
the company's financial performance on a weekly or more
regular basis was:
-
Australia - 91% (compared to 70% of
non-members);
-
U.S.- 89% (compared to 50% of non-members);
-
South Africa - 68% (compared to 49% of
non-members); and
-
UK and Ireland - 45% (compared to 18% of
non-members).
Share Plan Survey results includes tips for
increasing participation and depth of employee ownership in
ESPPs. The results can be found at
www.thoughtcentric.com
under Research & Insights for Employee Equity
Plans.
A free registration is required.
Rebecca Moore
editors@plansponsor.com