C: Employee Participation

Employee participation relates to management encouraging staff to actively take part in running and improving the business. Management can encourage employee participation in the following ways.

1. Employee Works Councils: Employees in business with at least 1,000 staff across Europe have the ability to set up a works council. Employees elect representatives within the business for the works council, thus giving staff a direct line of communication with senior management in the business. This is all part of an EU directive.     

A works council ensures that:

• Across all EU countries, employees receive their information from their management about business plans at the same time.
• Representatives within the company share the information received with their colleagues and construct a response to the plans.            

Before the plans are implemented, senior management is required to take into account the personal views of the works council.      

2. Worker Directors: These are employees elected and recommended by their colleagues to sit on the board of directors of a business. These directors participate in important decision-making at a senior level within the firm.

3. Employees Share Purchase Plan ((ESPP): Employees can buy shares at a reduced price or may receive shares as part of their reward package. Employees become owners in the business and can vote at the AGM.

The benefits of Employee Participation include:

• Increased motivation: Employees feel that they are valued and respected by management. This increases motivation levels and boosts productivity.
• Improved industrial relations: Employees representatives speak to management about issues such as pay and working conditions. These issues can be resolved quickly and lead to improved industrial relations between management and staff.
• Improved decision-making: Management can make better decisions when they include suggestions from employees. Staff possess skills and experience that can aid decision-making in the firm.

For a business to encourage employee participation within itself, in my opinion, would be to allow to be heard. Figure out why employees aren't participating as enough as you would like them to and address them. Encourage their ideas and empower them when its right. Include their own views and opinions within the decision-making process, which could improve relations between management and staff.