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Employee Share-Ownership and Motivation

The concept of employee share-ownership has been widely applied in Britain, Europe, America and Australia, yet there has been little research into the attitudes and expectations of the employee-shareholders. The author has attempted to provide research data on these variables by issuing a questionnaire to employees involved in a share-ownership scheme in a West Australian firm. The dimensions measured are challenge, support, responsibility, commitment, income, wealth, stability, career, satisfaction, application and participation. Based on the results, a model of motivation for employee shareholders has been. developed. There is a critical level of share-ownership required to produce favourable results on most, but not all variables. The conclusion is that employee share-ownership and employee motivation are related but the former is not sufficient to ensure the latter; a combination of employee share-ownership and employee participation in planning may be required to produce the desired results.