Employee share plans boost motivation and loyalty

Employees who participate in employee share plans are less likely to be absent and to leave their employer, but more likely to work longer hours and be more satisfied with their roles, according to research undertaken by National Institute of Economic and Social Research (NIESR) and London School of Economics (LSE) and commissioned by Computershare. 


The research also found that the majority of share plan members thought that membership reduced the likelihood they would leave the company, increased their motivation and their likelihood to recommend the firm to others.

The research, which was conducted over six months in nine countries, including South Africa, the UK, Ireland, Germany, Canada and Hong Kong and surveyed more 3,800 Computershare employees, evaluated respondents’ perceptions and consequential behaviour, whether or not they were a member of the company’s share plan.

The survey also found:

  • 36% of respondents said that a share plan was likely to attract talented workers to the organisation.
  • 46% of respondents said that the plan made it more likely they would recommend the firm. This equated to 55% for members and 34% for non-members.

Martyn Drake (pictured), managing director at Computershare, said: “Although there are signs that the economy is picking up, it remains vital for companies to understand whether the money they’re investing in employee reward and engagement is giving them measurable benefit.”

“For firms looking to attract or incentivise talented people, this research indicates that an effective share plan can be a key tool in the overall benefit package.”