Benefits October 28, 2009

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.
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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.

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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.

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