ESOPs Myths

Dealing with the cynics

Most people respond positively to the idea of employee ownership, but there are always exceptions.

Employee share ownership advocates often have to face the ”ideological cynic” - people who reject the idea of employee ownership on the grounds that there is no value for workers in sharing ownership.

The cynics usually have a reflex distrust for anything other than cash in the hand. Consequently, they are suspicious of business initiatives to reward employees in other ways or to engage, thereby, their greater commitment to the business.

You’ll find that the cynical types often have little direct personal acquaintance with the risks and rewards inherently associated with capital ownership – and, what’s more, they tend to be unduly anxious about the risks taken by other people more courageous than themselves in assuming responsibility for their financial destiny.

Most employers – and plenty of employees attracted to getting a “piece of the action” - would have encountered the sort of person who says, “What difference does this make? Nothing’s ever going to change around here”. Knockers like this usually see a share in the business as a responsibility they want to avoid.

Whether or not these hostile attitudes are well founded, a careful response can improve motivation, satisfaction and performance among cynics and non-cynics alike.

The ESOP doubters usually have a poor understanding of how they work.

The Questions and Answers on our “FAQS” have been composed with an eye to improving how well people understand the company ESOP.

To further understand the range of issues involved in communicating ESOPs to the wider community, to the labor movement and within your company, please visit the following pages:

Employee Ownership Group

ESOPs Myths

Dealing with the cynics

Communicating ESOPs in the Company

Communicating ESOPs in the Community

Communicating ESOPs to the Labor Movement