Survey
Results
Recent
Survey Results
Survey Results
Survey Results
OCTOBER 2001 CANADIAN ESOP SURVEY RESULTS
During October and November 2001, ESOP Builders Inc. polled 17 Canadian
owned public companies with some sort of employee share ownership or
stock option plan in place. This is what we found out:
- 53% of respondents have a Stock Option Plan but no
ESOP.
- 35% of respondents have an ESOP or Share Purchase
Plan only.
- 6% of respondents have a Profit Sharing Plan used
to buy stock.
- 6% of respondents have both a Stock Option Plan and
an ESOP.
Of the companies with Stock Option Plans:
- 80% have broad based plans and 20% have key person
plans.
- ESOP participation rates range from 25% to 50%.
- 70% of respondents administer their plans internally.
- 12% of respondents outsource the administration of
their plans.
- 18% of respondents administer their plans internally
in combination with outsourcing.
Common problems with the administration of plans
include:
- Trouble finding reliable outsourcing companies.
- Fulfillment of buy/sells.
- Internal accounting complexity.
- Outsource administrator not knowledgeable.
- Employee information not user friendly.
- Start up issues.
- Eight out of seventeen companies reported no real problems
with the administration of their plans.
Incentives and Ownership Trends in
the IT Workplace
March, 1999
HIGHLIGHTS AT-A-GLANCE
- 90% of all respondents would consider more incentives
than they currently have in place -- in particular financial incentives
-- to attract key employees and improve productivity.
- 24% of all respondents have Employee Share Ownership
Plans (ESOPs) in place. Of the companies that did not have ESOPs (76%
of respondents)
- 80% would consider implementing an ESOP.
- 90% of companies with ESOPs say the plans have helped
attract employees.
- 75% of companies with ESOPs say they have been a factor
in retaining staff.
- Flexible hours and tuition and training are the most
widely offered incentives. 68% of firms offer flexible hours; 50%
tuition and training options.
RESPONSES
1. What are you currently doing to attract and retain
key employees?
- 37% of respondents offer profit sharing. This was
the most frequently used financial incentive. 21% of responding companies
offer stock options.
- 24% have open book management. These firms tended
to offer the widest mix of financial and lifestyle incentives.
- Likewise, the 14% of respondents
with recreational facilities on site also tended to offer a broad
mix of incentives.
2. What are your annual staff-turnover rates?
- 73% of respondents have less than 15% turnover. 68%
of the companies said that's not good enough. They would consider
more incentives to attract and retain employees.
- 20% have a 16% to 30% churn rate.
3. How would you describe your employee group in terms
of motivation and productivity?
- 60% say their employees are
highly motivated. 75% say they are committed and productive.
4. Would you consider more incentives to improve the
above?
- 90% would consider more incentive to improve both
motivation and productivity.
5. In what age range is the majority of your employees
grouped?
- 90% of the employee group are under 40.
6. Do you have an exit strategy?
- 68% have no exit strategy. Of those indicating a strategy,
it is unclear what the majority plan to do.
- 35% of those with an exit strategy plan to take the
company public.
7. When would you take your company public?
- 59% within 3 to 5 years.
- 41% unsure.
8. Do you currently have an ESOP in place?
- 24% have an ESOP.
- 76% do not have an ESOP.
9. To whom does the ESOP apply?
- 83% of plans are broad based.
- 17% are key person based.
10. For those companies with an ESOP, what percentage
of eligible employees joined the ESOP?
- 50% of ESOPs have 100% participation.
11. What percentage of company shares do employees
hold?
- 92% of respondents indicate 20% or less.
- 58% indicate less than 10%.
12. Have you had an improvement in the following areas
since implementing the ESOP?
- 50% of respondents note productivity improvements.
- 90% indicate an improvement in attracting employees.
- 75% say the ESOP has helped in retaining employees.
- 43% indicate an increase in sales.
- 50% indicate more competitiveness.
- 88% indicate an upsurge in employee interest.
- 57% indicate an improvement in communications.
- 17% indicate that profits increased due to the ESOP.
13. If you don't currently have an ESOP, would you
consider offering some form of ownership to employees?
- 80% would consider an ESOP.
- 85% of those would consider
a broad based plan.
14. How do you think your employees would respond to
the following statements?
- 92% felt owing stock would make their employees more
interested in the company's financial performance.
- 90% felt employees would be proud to own stock in the
company.
- 82% felt stock ownership would make employees want
to stay with the company.
- 65% felt employees would find work more satisfying.
- 75% felt employees would be
likely to work harder.
Responses to question 14 correlate closely to American
studies asking ESOP employees their perspectives on working as an owner
rather than as an employee.
THESE SURVEY RESULTS CANNOT BE USED OR
PUBLISHED WITHOUT THE EXPRESS WRITTEN CONSENT OF ESOP BUILDERS INC.
|
