More companies are looking at employee ownership programs as a business strategy. Moreover, we're finding companies that already have them in place are looking for ways to leverage their value. The study examined the financial performance two years before and four years immediately after each of the companies adopted an ESOP, covering a period from 1971 through 1995. More than 60 percent of the companies studied saw a boost in stock price immediately following the announcement of the ownership program. Some 80 percent of the companies studied make financial information available to employees, and 65 percent say employees use this information to impact business results.
Training plays a role in getting employees to act like owners.
For example, about 73 percent of the companies studied said they keep employees well-informed about customer expectations. And 77 percent report that employees use this information in ways that benefit the business. Senior executives and middle managers act like owners most of the time, according to 93 percent and 76 percent of the companies surveyed. Hewitt Associates LLC is a global management consulting firm specializing in human resource solutions. All rights reserved.