THE EFFECTS OF EMPLOYEE SHARE OWNERSHIP PLAN ON EMPLOYEES WORK ATTITUDES AND JOB SATISFACTION IN SELECTED BANKS IN NAIROBI, KENYA
Awoute, Samuel Kokou Dzidula
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Employee Share Ownership Plans are becoming increasingly popular in the Kenyan local market as schemes provided to employees with the opportunity to acquire or purchase shares in their company. The adoption and implementation of ESOPs by both private companies and public listed entities have been on the rise in Kenya in recent years. This study investigated the effects of ESOPs on Banking employees’ work attitudes and job satisfaction level in Nairobi. A causal comparative study was done to investigate and analyze the effects of ESOP on employees work attitudes and job satisfaction in Nairobi using a sample composed of 200 managing employees purposively selected from population of the selected Banking firms. A properly structured questionnaire was used. Questionnaire response rate of 169 (84.5%) was recorded from the employees from the selected firms. Employee shareowners under the ESOP in their institution have a good job satisfaction in the sense that, their income make them feel valued in their company, they are regularly and consistently briefed on company performance and Management maintain open and active communication with them. The employees share owner’s work attitudes and job satisfaction level were best predicted by how satisfied they were with income (stock and cash dividends) and tax benefits offered under the ESOP plan. The work attitudes and job satisfaction level of participants of ESOP are better than the non- participants of ESOP. The research recommends that the banks allow employee shareowners to have more say in the way they want to perform and do their work. The banking institutions should allow the employee share owners to participate in peculiar decision making about the workflow in the organization as this will contribute to a better organizational performance.
- SCHOOL OF BUSINESS