Does Employee Ownership Reduce the Intention to Leave?

Does Employee Ownership Reduce the Intention to Leave?

Sara Elouadi, Tarek Ben Noamene
Copyright: © 2017 |Pages: 17
DOI: 10.4018/978-1-5225-0948-6.ch006
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Abstract

Employee ownership is an important element to develop employees' sense of belonging to their company and to unite them around strategic objectives. This kind of involvement reflects the internal cohesion and pride that unite employees with their company. Aware of the development of employee ownership and in anticipation of the deep implications of this practice in France, this study proposes to examine the impact of employee ownership on work attitudes. We conducted a questionnaire-based survey among employees of the SBF 250. The collected responses were then analyzed by a structural equation method. The results indicated that direct employee ownership helps to significantly reduce intention to leave. Similarly, organizational commitment and job satisfaction correlate positively and significantly with the granting of shares to employees.
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1. Literature Review

It is proposed in the literature that employee ownership creates a context of trust that encourages positive work attitudes such as innovation and investment in specific human capital (Charreaux, 1998). Indeed, financial participation provides a sense of value that Tannenbaum (1983, p. 251) describes saying: “ownership is a very attractive concept … being an owner values the person.”

Being owner increases loyalty, commitment and satisfaction (Klein, 1987, p. 320). This special relationship vis-à-vis the company is likely to encourage employee initiatives and investments in human capital (Liebeskind, 2000).

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