Research reveals impact on staff 'loyalty and commitment'
Quitting is the last thing on a worker's mind if they are a participant of an employee share plan, according to a new report, which researched how this benefit can affect the behaviour of Asia-based employees.
More companies in Asia are implementing employee share plans, a benefit where employees own shares in their company. In Hong Kong, the number of companies establishing this benefit is now at 83%.
According to the research from Computershare, which surveyed more than a thousand respondents across Mainland China, Hong Kong, Taiwan, and Singapore, 82% of employee share plan participants said they do not think about leaving their employer.
"Our research shows the probability that an employee will quit decreases as their percentage of total wealth held in employer shares increases," the report read.
Read more: Employee retention puts doubt on expansion plans
In addition to turnover influence, the research revealed that these employees with employer shares have a growing sense of "loyalty and commitment" to their company. These employees also have a "greater sense of psychological ownership", meaning they think of the organization as "their own”, buying into its goals and objectives. They also admitted they strongly view themselves as members of the organization, report higher personal accountability for its objectives, and experience a "greater sense of unity with its values."
Furthermore, employees with employer shares were also more likely to recommend their organization as a great place to work and were more satisfied with their jobs.
Read more: Nearly half of employees plan to leave their jobs, says new report
"Since 2014, Computershare has witnessed a significant shift towards employee equity in Asia with many local companies implementing new employee share plans," read the research. "Based on historical trends and anecdotal market sentiment, Computershare anticipates this Asian trend will continue to gain momentum."
With these findings, Computershare is encouraging companies that want to retain talent to consider extending their share schemes to more of their staff.
"This research makes it clear that with continued investment in employee share plans, companies are benefiting from a greater positive impact on employee attitudes such as job satisfaction, commitment and accountability, and employee behaviours," read the report.
