Research: Attitudes to employee share ownership
Millennials will form 57 per cent of the workforce by 2020, yet they are less likely to participate in employee share schemes than their older colleagues. ProShare’s research sets out to understand why this cohort aren’t as engaged with share schemes.
- Around 80 per cent of respondents who were already in a Save As You Earn (SAYE) scheme were part of it because it was a convenient way to save, while 75 per cent said they wanted to profit from the shares and 38 per cent wanted to own shares in their company.
- Reasons for not participating in an SAYE scheme included: 40 per cent who could not afford to, 25 per cent said they didn’t participate for another reason and 21 per cent said they had other arrangements.
- Of those who were already in a Share Incentive Plan (SIP), 77 per cent said it was a convenient way to invest, while 67 per cent said the matching shares were valuable to them.
- Although affordability was still a reason for not participating in SIP for 32 per cent of respondents, 25 per cent said they didn’t understand how it works and 24 per cent thought shares were a risky investment.
This research project comprised an online questionnaire and telephone interviews with a subset of questionnaire respondents. Nearly 1,700 employees responded to the questionnaires, across the UK workforces of 11 companies. More than 1,200 of the survey respondents were participating in their company’s SAYE and/or SIP; 489 were not.