Britam Holdings has approved the establishment of the Employee Share Option Plan (ESOP) that will allow the company to reward staff, this as studies show that motivated employees can increase profits by almost 50 per cent
In its recent study, Harvard Business Review opined that motivation isn’t just a touchy-feely thing that benefits employees. In fact, improving motivation can increase gross profits by 47 per cent, according to a study in the Harvard Business Review.
The HBR gave an example of banks that sent its managers to a leadership training course. Post training, they saw credit card sales increase by 20 per cent and personal loan sales increase by 47 per cent
Announcing the offer late last week during the firm’s Annual General Meeting, Chief Executive Officer Benson Wairegi said that hardworking employees whose results are seen will be allowed to acquire two per cent of the total share capital of the company’s ESOP
“Only those who work hard during the year will be given an opportunity to acquire shares in the company,” Wairegi said.
He said at least two per cent of the total share capital will now be reserved for employees who are results-oriented
He added that the offer will enable the company to retain the best skills in the market.
Through the plan, employees can buy stock directly or be given as a bonus, can receive stock options or obtain stock through a profit sharing plan.
This is coming at the time the firm when the firm is recovering from past losses to record a whopping 455 per cent rise in after tax profits. Last year, it reported an after tax profit of Sh2.4 billion– compared to a loss Sh1 billion in the previous year.
During the meeting shareholders approved a dividend of Sh 581.5 million or 30 cents per