Expansion in employee share ownership anticipated

At least a million employees will be offered the chance to
invest in their own company on a tax-favoured basis under the new employee
share plan, according to Towers Perrin research.

A survey of 66 major employers reveals that 98 per cent of
them are currently designing their plans and intend to launch them within the
next three to twelve months.

Many employers plan to invite employees to invest from their
pre-tax money, and only then look at other elements of the plan such as free
and matching shares.

Damian Carnell, principal with Towers Perrin said, “There is
plenty of evidence that share plans help with productivity, employee morale and
engagement, but for companies to maximise the benefit they must get a clear
message across to employees.

“Most importantly, how the plan works, why it has been
introduced and how the employee can maximise the benefit.”

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By Karen Higginbottom