7.1 Using the Herd: How Peer Effects Can Be Applied to Increase Plan Participation
The realization of the desired outcomes of employee share ownership programs such as enhanced commitment, productivity and retention of employees, and prevention of hostile takeovers, strongly depends on the participation of individual employees. However, studies have shown that participation rates offer growth potential. In search of ways to raise participation rates, these panelists have discovered there are indications that participation decisions are possibly not only driven by individual cost-benefit considerations, but also by social effects. In other words, the participation of coworkers could influence individual share plan participation decisions. In this case study discussion of Siemens AG, attendees will hear about the contexts in which peer effects are especially important, as well as recommendations derived of how to effectively influence the peer effect through a plan communication strategy. Join this session to have a greater understanding of peer-to-peer share plan participation effects and learn how to use this phenomenon to increase your own plan participation!
, Siemens Gas and Power (DE)
, Kenan-Flagler Business School, University of North Carolina at Chapel Hill (US)
Dr. Michael Wolff
, University of Göttingen (DE)