Keeping employees through company participation

Uni Göttingen/Fordaq
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Employees who have a stake in the company they work for through capital investments stay with it longer - even if they have good opportunities elsewhere and are generally willing to change jobs. This is the result of a multi-year study by the universities of Göttingen, Mainz and Groningen on more than 190,000 employees of a multinational company in Germany. The results are published in the journal Accounting, Organizations and Society.

In view of the general shortage of skilled workers, many start-ups are already relying on capital-based participation programs for employees. In the meantime, more traditional companies are also increasingly introducing programs that also make positions below management attractive, for example through small minimum investments. However, due to a lack of empirical evidence, it has so far been unclear whether such programs actually help to keep employees in the company. It has now been shown that - if communicated well - they actually create sufficient solidarity to increase the inhibition threshold for switching.

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