How Employee Participation Keeps Your Team Engaged and Motivated

If you’re looking for ways to keep your team more engaged and motivated, you’ve come to the right place. Employee participation is more than just a buzzword; it’s a proven strategy for increasing engagement and retention. But how does it work exactly? And how do you implement it in your organization? Read on to find out!

What is employee participation?

Employee participation means that employees have a stake or interest in the company they work for. This can take the form of shares, options, or other financial instruments. The idea is that when employees have a direct financial interest in the success of the company, they are more motivated to work hard and contribute to that success.

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SAR plan

A SAR is a kind of virtual share. The employee receives a bonus linked to the company's value growth.

Profit sharing

With profit sharing, employees receive a bonus based on the company's profit.

Stock options

Stock options give employees the right to buy shares at a predetermined price.

Stock certificates

With stock certificates, employees receive profit rights but no voting rights.

Bonus

The employee receives a bonus based on targets.

Shares

The employee becomes a co-owner of the company.

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Why is it important?

1. Increased Engagement: If you know that your efforts directly contribute to the value of your shares or options, wouldn't you work harder? Employees who participate feel more connected to the company and its goals.
2. Higher Retention: Employees who are financially invested in a company are less likely to leave. This can help retain talent and reduce recruitment costs.
3. Improved Performance: With a direct link between effort and reward, employees are often more motivated to go above and beyond, which can lead to better overall performance.

How do you implement it?

1. Determine the type of participation: Do you want to offer shares, options, or perhaps another type of financial instrument? Research the pros and cons of each to decide what fits best with your company.
2. Set criteria: Who is eligible for participation? Is it for everyone or only for certain roles or levels within the company?
3. Communicate clearly: Make sure employees understand how the program works, what the benefits are, and what is expected of them.
4. Evaluate regularly: As with any initiative, it’s important to regularly check in and adjust to ensure it remains effective.

Conclusion

Employee participation is a powerful way to increase engagement and retention. By giving employees a direct stake in the company, you create a culture of ownership and accountability. If you’re considering starting an employee participation program, take the time to research your options and develop a plan that fits your unique organization and goals.