Incidence of Employee Share Ownership is low in Australia ( especially in SME’s ) – but why ?
The incidence of ESO reported in a recent survey by TNS social research was quite low – with only one in ten businesses ( 10 % ) having a plan. Only 4 % of all businesses had a broad based plan which was open to at least 75 % of all employees.
The companies most likely to have an ESOP:
Public listed companies ( 52 % )
Companies with an overseas office ( 32 % )
Large Businesses :
100 or more employees ( 30 % )
More than 50 offices in Australia ( 39 % )
Annual turnover of more than $50M ( 32 % )
Those least likely were:
Private companies 9 8 % )
Companies with only one office ( 10 % )
Small Businesses – 5 – 19 employees ( 9 % )
Interestingly the same research strongly supported the effectiveness of existing plans with 51 % of businesses who have a plan ranking them as either extremely effective or effective and only 8 % ranking them as ineffective or not at all effective .
This is in line with our experience where clients who have already implemented a plan are seeing dramatic improvements in financial performance and employee satisfaction ( and more importantly retention of key staff ) . A key recommendation of the report was to raise awareness amongst the business community of the benefits of ESOP’s .