Participation in and outcomes of employee share ownership : a case study.
The research was conducted in a case study organisation and involved two stages.
An initial attitude survey was administered to employees in the first three months of the
company's employee share ownership scheme and a second survey was administered
eighteen months later. In addition to the surveys, data were also obtained via depth
interviews with senior managers and group discussions with employees.
A series of models were developed to test possible reasons why employees joined
the scheme and the nature of the relationship between the reason for joining and both
participation in the scheme as well as the level of investment made to the scheme. Of
particular interest was whether financial capacity was a significant factor influencing
whether employees joined or the level at which they invested.
The results showed that two of the models of reasons for joining predicted either
participation in the scheme or the level of investment made. Financial capacity was also
highly significant in predicting both participation in the scheme as well as the level of the
Outcomes of the scheme, both attitudinal and behavioural, were examined using
employees' self-reports and 'objective' measures comparing changes over time. Analysis
was also conducted to determine whether reasons for joining influenced subsequent
outcomes. Employees' indicated that they expected or experienced only modest
attitudinal changes as a result of the scheme and they did not expect behaviour to
change. The 'objective' measures confinned that neither participation in the scheme, nor
the level of investment made to the scheme were significant predictors of attitudes or
behaviour eighteen months after employees had joined.
Attitudes generally declined over the eighteen months between the surveys, but
this again was unrelated to participation or to the level of investment in the scheme.
The employees' reason for joining also did not appear to be a significant predictor of