THE EFFECTS OF EMPLOYEE SHARE OWNERSHIP PLAN ON EMPLOYEES WORK ATTITUDES AND JOB SATISFACTION IN SELECTED BANKS IN NAIROBI, KENYA
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Date
2016-06
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Abstract
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.