Musings at the intersection of business and life

Share the wealth

Business Savvy
April 8, 2010 by Peter Economy

Have you ever wondered why your employees aren't as dedicated as you are or don't treat your business as seriously as you do? In short, why they don't act like owners? If that's the case in your business, chances are it's because you haven't given them real opportunities to share ownership of the business with you.

A 10-year National Bureau for Economic Research study of more than 40,000 workers concluded that there are a number of advantages to be gained when you share the wealth with your employees. Some of these advantages include greater attachment, loyalty, and willingness to work hard; lower turnover; worker reports that coworkers work hard and are involved in company issues; worker suggestions for innovations; and worker interference to prevent shirking by coworkers. However, providing your employees with ownership opportunities (most often in the form of company stock) is most effective when combined with a supportive culture of employee involvement and decision making.

If you're not sharing ownership of your company with your employees, then you shouldn't be surprised that they don't act like owners. Why should they? If you want your employees to act like owners, then you've got to make them owners.

Related tags: employee, ownership

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