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Related Experiment Videos

Every employee an owner. Really.

Corey Rosen1, John Case, Martin Staubus

  • 1National Center for Employee Ownership, Oakland, California, USA. crosen@nceo.org

Harvard Business Review
|June 9, 2005
PubMed
Summary
This summary is machine-generated.

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Broad-based employee equity plans, when implemented correctly, drive higher productivity and profits. Key factors include significant workforce participation, perceived financial benefit, supportive management, and a true sense of ownership.

Area of Science:

  • Business Strategy
  • Organizational Behavior
  • Human Resources Management

Background:

  • New regulations on stock options may lead companies to restrict equity compensation.
  • Limiting equity to executives can negatively impact long-term company performance.

Purpose of the Study:

  • To examine the impact of broad-based employee equity plans on company performance.
  • To identify critical factors for successful implementation of employee ownership programs.

Main Methods:

  • Analysis of case studies from companies with successful employee ownership programs.
  • Examination of factors contributing to an ownership culture.

Main Results:

  • Broad-based ownership, when implemented effectively, correlates with increased productivity, reduced turnover, improved recruitment, and higher profits.

Related Experiment Videos

  • Key success factors include widespread equity distribution, significant perceived financial value, reinforcing managerial practices, and fostering a genuine sense of ownership.

    • Conclusions:

    • Implementing broad-based employee equity plans, with a focus on key factors, cultivates an ownership culture.
    • This culture leads to a more loyal, cooperative workforce aligned with company goals, resulting in exceptional business performance.