BT Group starts down the colleague ownership path
Employee ownership can be a powerful tool in encouraging staff to have more of a customer focus so that at the end of each year they will see a bonus. The BT Group under its new CEO Philip Jansen has announced that it will if performance is good enough hand out shares each year and is expecting this new 'YourShare' scheme to deliver an investment of £50 million when awarded in its first year which will be 2020. This works out at around £500 for each employee.
Those working for Openreach will have their awards aligned to how Openreach is performing.
The shares must be held for at least three years before they can be sold and for those working for BT Group in countries where shares are not allowed to be handed out like this a cash equivalent will be paid.
For those wanting to read more the press release is of course on BT website, there was an event for BT colleagues and a consultation of the work force is expected. One immediate thought we have is how will success be measured and whether the different BT Group divisions e.g. Consumer and Enterprise will be measured differently and what allowances will be made for the impact of regulatory measures.
£500 a year may seem small and since this will be handed out as shares the performance of BT Group on the stock market will determine if the value goes up or down. Alas the trend has been down for some years, though in the second half of 2018 there was something of a rally but that seems to have been cancelled out during 2019.