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Policy Brief 210 - Employee participation and social performance: new challenges for French companies in a context of crisis

Policy Brief 210 - Employee participation and social performance: new challenges for French companies in a context of crisis

13/01/11

Employee participation and social performance: new challenges for French companies in a context of crisis (January 2011)

Contents:

  •   The autonomy of employees, employee savings and share ownership improves corporate social performance
  •   Communication between employers and employees, directly and indirectly, is effective only under certain conditions

Employee participation is more than ever a topical issue for companies in search of a new managerial model. From a study on French data, this paper outlines the conditions of effectiveness of different participatory processes and examines the combinations most likely to improve business performance, analyzed here in terms of performance social (as measured by absenteeism).
Several findings emerge. Savings plans (PEE) and employee share ownership positively influence employee behavior, while profit-sharing, used so isolated, does not produce significant effects. Moreover, some devices (including PEE) appear to enhance the effectiveness of other forms of participation, including social dialogue and employee participation in major decision-making bodies. However, such incentives "financial" turn out weaker than some non-monetary incentives such as participation in decisions concerning the organization of work (including increased employee autonomy).

Despite the proliferation of new channels of communication (especially under the impetus of ICT) to stimulate employee participation, direct social interactions and informal exchanges between workers and management are more effective to increase confidence in reporting relationships , and beyond social performance.

The construction of a more fundamental link between the employee and his work (fulfillment, meaning at work) is therefore essential to mobilize employees. The association for employee profit sharing must be part of a broader participatory culture, particularly through research effective combinations, adapted to each company, between different participatory schemes.

  •   Authors: Salima Benhamou and Marc-Arthur N'Diaye , Labour-Employment Department.

Press contact:

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