http://blog.intercentar.de/?p=113 Intercentar: Promoting Employee Financial Participation focused on Share Ownership Plans Sat, 26 Apr 2014 23:19:08 +0000 hourly 1 http://wordpress.org/?v=3.9.1 http://blog.intercentar.de/?p=113#comment-6 Tue, 30 Aug 2011 09:26:22 +0000 http://intercentar.wordpress.com/?p=113#comment-6 We need to take a more careful look at the forms of employee involvement in the company´s success: being financially rewarded for the performance (profit sharing) and the step beyond this, which is taking them to the negotiation-table. There exist several possible models of decision-making. They from a most rudimentary form of being supplied with the relevant informations on the company´s strategy to the most democratic participation, which is having a vote in the decisions. Profit-sharing-schemes tend to be models, which do not necessarily emphasize the involvement of employees.
Nevertheless the profit-share itself needs to be settled before it´s distribution. The initiative report of the EESC SOC/371 pointed out, that a predefined formula has to be calculated. Otherwise there is a risk of arbitrariness and can have a negative influence on the relation between employer and employee.
The question, how big the share should be or if the employees are included in the decision-making, is a question which needs to be analysed individually from company to company.
A more important question would be, if profit-sharing-schemes are sufficient for fostering the productivity and competitiveness? Some studies show, that the implementation of additional employee participation elements, such as in the case of employee stock ownership plans (ESOPs) have a more positive effect on the companies´ long term success and on stabilising macroeconomic structures.

]]> http://blog.intercentar.de/?p=113#comment-5 Wed, 10 Aug 2011 15:00:01 +0000 http://intercentar.wordpress.com/?p=113#comment-5 You talk about companies with a profit sharing scheme. Do you know whether employees are included in the decision-making process whether or not, or how much profit is to be distributed at all or reinvested into the company? If they should negotiate the distribution afterwards they should be included in the step before, don’t they? So they probably could better understand the employer’s (personal) situation (personal effort for the company, family problems) his motives for negotiation and not act so rationally selfish during the distribution as you claim.

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