Employee Share Ownership is an Effective Business Strategy Employee Share Ownership can be an effective way to improve economic competitiveness for public and private sectors. Three particular areas where employee share ownership thrives include Commercial Enterprises, Economic Development and Privatization Efforts. Commercial Enterprises Thousands of companies worldwide are using employee share ownership incentives to attract, retain and motivate their employees. Providing employees with an ownership stake is an effective means of tying employees' personal financial interests with the success of the company. Shared ownership unites the interests of employees, managers and shareholders in building shareholder value and, as owners, employees have added incentives to help improve overall company performance.
Private enterprise is typically the fuel of economic development.
As economies develop, wealth is generated through increased value created by way of productive assets. Securing broad-based ownership through widespread use of employee share ownership plans can help ensure that a growing economy will benefit large numbers of shareholders. Providing workers with an opportunity to obtain a significant ownership stake gives them an incentive to support economic reforms by allowing them to benefit directly from policies intended to promote the growth of the private sector. Russia Privatization Efforts Employee share ownership can make privatization programs more politically acceptable by helping to ensure domestic participation in the ownership of privatized assets. This can often help overcome labor resistance to the privatization process and can even help attract investors who recognize the benefit of having employee-shareholders as partners.