COMPANIES have been told that they can get their staff to work harder and boost sales if they promote schemes to give shares to their employees.
The Irish ProShare Association said employee financial involvement has an important role to play in boosting Ireland’s competitiveness and aiding economic recovery.
A recent study carried out in the UK showed that share ownership gave employees the incentive to work harder and innovate more.
It found that between 2008 and 2009, employee-owned companies saw sales growth rise above 11pc compared to less than 1pc for non-employee owned companies.
Profit sharing schemes, approved by the Revenue Commissioners, allow an employer to give staff shares in the company worth up to €12,700 per year tax-free.
Chairman of the Irish ProShare Association Gary Boyle said: “Research has shown that employee financial involvement can increase the efficiency and profitability of organisations without adding to their costs, which enhances competitiveness and employee engagement.”
He called on the Government to incentivise share ownership in the Budget.