Profit sharing schemes could cause low employee motivation, according to a report

Date: 21/12/2010

Profit sharing in workplaces can lead to a lack of employee motivation, an academic has warned.

According to Dr Colin Green of Lancaster University Management School, profit-sharing tactics, which offer employees a share of the company's success through stocks, bonds or cash given immediately or at retirement, can lead to poor relationships between staff.

While employees in these working environments were happy with their pay, they were less satisfied with working environments, complaining that they had to work too many hours, or were worked too hard.

Dr Green has carried out a study of 6,500 people in the UK and produced a report, Profit Sharing and the Quality of Relations with the Boss.

The report suggests that bosses are more likely to put pressure on employees in these types of working environments, leading to complaints about management pay or leadership style.

Profit-sharing can also foster distrust between workers, and staff are more likely to complain about colleagues' lack of effort.

And the report also suggested that female workers find these situations harder than men.

Posted by Jo Morgan 

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