Employee Share Schemes
3rd March 2005
I was delighted to read last week that about the 45,000 or so Tesco workers who have recently received money from an employee share scheme. What happened was that the staff were able to buy into an employee savings scheme which purchased Tesco shares at low prices. So there was a 3-year and a 5 year savings scheme which bought shares at £1.51 for the 5-year scheme or at £1.98 for the 3-year scheme. When the savings plans matured the shares were actually worth £3.
So the employee savers made up to £7,000 gain on their savings money.
Which is brilliant, and of course, what Tesco have realised is that employees are not really motivated to work just for money. We all know that the word JOB stands for Just Over Broke – and that’s all you ever will be if you work for someone else. But, if you work for yourself you get very much more motivated – and an employee share scheme gives the worker a sense of working for themselves, because the more profitable the business is, the more the shares are worth and therefore the more the employee saver gets as a return.
It’s a great idea and I would like to see all employees having some kind of profit or sales inventive as a payment choice in their salary package – it would make a huge difference to the working lives of many people, and it also makes a huge difference to the business – a great win-win situation.