Chapter

Creating a Bigger Pie? The Effects of Employee Ownership, Profit Sharing, and Stock Options on Workplace Performance

Joseph R. Blasi, Richard B. Freeman, Christopher Mackin and Douglas L. Kruse

in Shared Capitalism at Work

Published by University of Chicago Press

Published in print May 2010 | ISBN: 9780226056951
Published online February 2013 | e-ISBN: 9780226056968 | DOI: http://dx.doi.org/10.7208/chicago/9780226056968.003.0005
Creating a Bigger Pie? The Effects of Employee Ownership, Profit Sharing, and Stock Options on Workplace Performance

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This chapter analyzes the relationship of various forms of shared capitalist compensation to six workplace outcomes—turnover, absenteeism, perceived effort of co-workers, loyalty to the firm, willingness to work hard, and frequency of worker suggestions to improve productivity from the perspective of shared capitalism. It also examines employee responses to questions about their response to shared capitalist incentives and analysis using the General Social Survey (GSS) and NBER data sets. It states that shared capitalism affects workplace performance and substantiated by the fact that the results from the NBER sample are broadly similar to the results from the nationally-representative GSS. Shared capitalism is linked to lower turnover and greater loyalty and willingness to work hard, particularly when combined with high-performance policies, low levels of supervision, and fixed pay at or above market levels. Workplaces where workers average more shared capitalist compensation report greater employee effort along several dimensions.

Keywords: shared capitalism; workers; General Social Survey; National Bureau of Economic Research; workplace performance; turnover; loyalty; employee ownership; profit sharing

Chapter.  10855 words.  Illustrated.

Subjects: Economic History

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