The practice of financial participation in corporations in the CEE countries

Abstract

The application of financial participation, as a way of rewarding employees, is one of the most important topics in the modern practice of rewarding employees because it directly affects employees' attitudes and behaviour. The subject of the paper is the analysis of the application of the employee share scheme, profit sharing, and stock options in rewarding managers, professionals, and clericals in the corporations of nine Central and Eastern European (CEE) countries, members of the Cranet academic network, related to the policy and practice of human resource management in their country. The data, which were analyzed through the SPSS statistical program, were taken from the official Cranet database from 2016. This paper aims to determine the level of application of the three most important types of financial participation in rewarding employees. Various studies have pointed out the importance of applying financial participation to the satisfaction, motivation, and productivity of employees. Based on the theoretical development and empirical data, it has been found that companies in the CEE use a wide range of financial participation schemes and that financial participation is used mostly for managers and professionals.