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Profit sharing, firm performance and union influence in selected European countries

Daryl D'Art (Department of Personnel and Employee Relations, University of Limerick, Limerick, Ireland)
Thomas Turner (Department of Personnel and Employee Relations, University of Limerick, Limerick, Ireland)

Personnel Review

ISSN: 0048-3486

Article publication date: 1 June 2004

Abstract

Schemes of profit sharing and employee share‐holding have a 19th century origin. The objects of profit sharing vary according to its proponents. The primary focus of this paper will be on managerial schemes of financial participation and the expectations that their installation will lead to an improvement in organizational performance and employee behaviour. Using a survey of 2,827 private sector firms in 11 European countries we test for the effect of profit sharing on profitability, productivity and employee turnover and absenteeism. In addition, the effect of profit sharing on union influence is examined. In common, with other research in this area, our results show that while there is some evidence of a positive relationship between profit sharing and organizational performance, this was not definitive. In the case of union influence, there was some evidence of an adverse effect of these schemes on the solidarity of the collective.

Keywords

Citation

D'Art, D. and Turner, T. (2004), "Profit sharing, firm performance and union influence in selected European countries", Personnel Review, Vol. 33 No. 3, pp. 335-350. https://doi.org/10.1108/00483480410528869

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited