Allowing employees to own shares in a business

capri · Jul 2, 2023

A local TV channel recently reported that a major listed bank has decided to allow its employees to own shares in the company.
I have carried out investigations and realized that such course of action is popular, especially among blue-chip firms.

In your view, what benefits does a business gain by inviting employees to purchase its stock?
Apart from having the opportunity to share in the profits of a company, what other advantages do employees enjoy by owning a company's shares?

Stardom22 · Jul 2, 2023

I think this is can be a valuable opportunity for the employees to get the chance of investing in the company that they are currently working in. I have never heard that happening in my country.

eldavis · Jul 2, 2023

Yes i have heard about this before, most business or companies tend to allow their employees own shares in the business. I guess this would encourage them to put in their best effort since they have a share in it.

Niyi Briggs · Jul 2, 2023

When the staff know that they would lose their own money if the business doesn't perform well, they would put in their best efforts to make sure the business stays and performs well.

cherry123 · Jul 3, 2023

This is a good idea for workers to be shareholders in their business or organization. I believe it will help them to work even more so that their dividend will be high too

capri · Jul 3, 2023

Stardom22 said:
I think this is can be a valuable opportunity for the employees to get the chance of investing in the company that they are currently working in. I have never heard that happening in my country.

It is strange that none of the companies in your country allow their employees to own shares.
I suppose this may be because the firms are privately owned. Private companies do not usually invite employees to purchase shares.

fcbetting · Jul 3, 2023

This is common practice in start ups. Start up owner can't pay all his workers since business is at start and don't generate enough income or non income. So you it gives shares employers.

Stardom22 · Jul 3, 2023

capri said:
It is strange that none of the companies in your country allow their employees to own shares.
I suppose this may be because the firms are privately owned. Private companies do not usually invite employees to purchase shares.

I think that opportunity can be so a sure bet in terms of motivation for the employees to work more harder. Subsequently it's a win win situation for the employees to earn from the shares and their monthly salaries.

eldavis · Jul 3, 2023

cherry123 said:
This is a good idea for workers to be shareholders in their business or organization. I believe it will help them to work even more so that their dividend will be high too

Yes that's true, and this will also make them want to put in their best as well, cause they know that if the company goes down, they would not just be loosing their salaries but also their investments.

Heatman · Jul 3, 2023

capri said:
A local TV channel recently reported that a major listed bank has decided to allow its employees to own shares in the company.
I have carried out investigations and realized that such course of action is popular, especially among blue-chip firms.

In your view, what benefits does a business gain by inviting employees to purchase its stock?
Apart from having the opportunity to share in the profits of a company, what other advantages do employees enjoy by owning a company's shares?

This is actually a very good way for you to get your workers to be very committed to the business especially when they know that they now have a part in the ownership of the company, they are going to contribute everything to see the company grow.

astutimeliana723 · Jul 4, 2023

One of my workplaces used to allow employees who wanted to participate in investing in the company, but I didn't join them. Because I was a newcomer there, who didn't last long to work there, because of the toxic work environment.

Springtime · Jul 5, 2023

Yes, this is common for startups. I have worked for a startup many years ago. Since they cannot afford to give me a decent salary, they offer me some shares in the company. I accepted the offer. The company has grown a lot and as of to date, I am still receiving dividends from the company.

Heatman · Jul 5, 2023

astutimeliana723 said:
One of my workplaces used to allow employees who wanted to participate in investing in the company, but I didn't join them. Because I was a newcomer there, who didn't last long to work there, because of the toxic work environment.

It is always very frustrating to work in a toxic environment because it is going to make the job unbearable for you and I understand the reason why you had to quit the job.

astutimeliana723 · Jul 6, 2023

Heatman said:
It is always very frustrating to work in a toxic environment because it is going to make the job unbearable for you and I understand the reason why you had to quit the job.

Yes you are right, they act racist towards their employees. Even though the employees are immigrants from various regions, each of which has its own regional language. So when they speak their own regional language, so migrants from other areas do not understand it. Even though they should still be able to use the national language that all employees understand.

eldavis · Jul 6, 2023

Stardom22 said:
I think this is can be a valuable opportunity for the employees to get the chance of investing in the company that they are currently working in. I have never heard that happening in my country.

I am very sure there are companies like this in your country, you just have not heard about them yet like you said. Even here in my country i have not come across anyone personally at the moment.

astutimeliana723 · Jul 6, 2023

eldavis said:
I am very sure there are companies like this in your country, you just have not heard about them yet like you said. Even here in my country i have not come across anyone personally at the moment.

Yes you are right, they do exist but are probably very rare. Because companies usually only want to benefit from labor, with them working for us, but don't want to involve more in stock investment activities. They prefer stock investment from investors who are rich and trusted.

Etini Willie · Jul 6, 2023

Stocks in companies is open for anyone to buy when it is open for trading. I have bought shares in a company I was working in while being an active staff. It doesn't change anything about your status as an employee of the company. They still pay you your salary and give you your dividends when due.

eldavis said:
I am very sure there are companies like this in your country, you just have not heard about them yet like you said. Even here in my country i have not come across anyone personally at the moment.

Stardom22 · Jul 7, 2023

astutimeliana723 said:
Yes you are right, they do exist but are probably very rare. Because companies usually only want to benefit from labor, with them working for us, but don't want to involve more in stock investment activities. They prefer stock investment from investors who are rich and trusted.

You are very right on that my friend. Most companies are up to making exorbitantly profits by exploiting the poor workers on the job industry. I hope only a few companies would consider involving their employees in the buying of the company's shares.

astutimeliana723 · Jul 7, 2023

Stardom22 said:
You are very right on that my friend. Most companies are up to making exorbitantly profits by exploiting the poor workers on the job industry. I hope only a few companies would consider involving their employees in the buying of the company's shares.

Even if the business owner allows employees to participate in investing in shares in the company, it will indirectly improve their welfare and will increase the level of employee loyalty to the company. So that the turnover rate of employees can be minimized.

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