The Impact on Absenteeism and Quits of Profit-Sharing and other Forms of Employee Participation

Abstract

Using data on 52 engineering and metal working firms in the United Kingdom in 1983–84, the authors of this study investigate how employee participation affects absenteeism and quit rates. Included in the explanatory model are measures of union presence, formal schemes for employee involvement in decision-making, employees' perceived participation in decision-making (based on interviews), and the extent of employee financial participation through profit-sharing, share ownership, and fringe benefits. The results indicate that firms with participation schemes had significantly lower average absenteeism and quit rates than firms without such schemes.