Performance Ownership: A Roadmap to a Compelling Employment Brand

Transforming Employees New financial incentive & stock ownership plans are being introduced 1992 – 17% of companies used broad-based stock ownership program In 1997 this figure was up to 35%

Financial Ownership Alone May Not Result In Highly Productive Employees Can cause “free agent” mentality Stock options can be viewed as a benefit or entitlement, having no effect on their performance. “free agent mentality” – workers are concerned w/ where they can get the best deal, rather than w/ their commitment to the long-term success of the company Companies need to capture the mind of employees, not simply make them think of the money they could make

7 Key Factors For Performance Ownership Financial Ownership Meaningful Work Business Information (financial literacy) Employee Involvement Leadership Performance Feedback Career Management Financial Ownership – Recognized common stake is necessary, but not sufficient Meaningful Work – Work needs to be designed so employees can see how their job affects the ultimate success of the business (helps supply meaning not only for their job but for their life as well) Business Information – Employees need to be able to access information to understand the business, its status, and its impacting factors (frequent communication with employees is a good way to spread this information) Employee Involvement – The ability for an employee to make meaningful decisions or have an input in them is key for the employee to want to use their skills and abilities to create more business success Leadership – Leaders provide direction, knowledge, and support to help employees choose wisely Performance Feedback – Constant feedback on how effective the employee’s individual contributions (good or bad) are to the company’s failure or success helps the employee feel recognized and helps provide continuous learning Career Management – Evidence of the organizations long-term commitment toward employees (building long-term careers, investing in training and development)

Creating an Employment Brand All too often, orgs enact change during time of crisis, as defensive reaction to competitive pressures. But developing competencies and performance ownership must be combined in integrated way in order to create ownership culture. The 7 Key Factors are not sequential steps Once created, the brand will “speak for itself” The 7 Key Factors are not steps to be done sequentially. The performance ownership idea should be implemented progressively. Many of the Key Factors may well already be in use at a company, so that company should pick up from there and implement the rest. When performance ownership is at work, the employees are motivated and passionate about their work and customer service; organizational performance is high. These employees will spread the word and the company will be recognized as a company that provides work that is rewarding and that provides incentive

Conclusion Evidence shows that Ee participation and org culture, when combined w/ Ee ownership, improve financial performance of org.