Deputy Prime Minister Nick Clegg urged more companies on 16th January, to offer shares to their employees, saying it will improve productivity and unlock growth. He told an audience in the City that the government planned to cut red tape, and reform the tax system to accommodate employee ownership. It is hoped the measures will create what he called a "John Lewis economy". Department store group John Lewis is owned by its employees and distributes its profits between them.
Kim Comments: "My personal opinion is that this can be motivating for all involved in the business. However from experience employees generally want to receive more basic elements before such schemes are considered for example additional holidays, flexible working, sick pay, pension contributions. These are the rewards that they can enjoy now and contribute to a more positive relationship with the employer"