ifs ProShare - Big increase in employee savings through share ownership

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Big increase in employee savings through share ownership

22 May 2008

ifs ProShare, a not-for-profit membership organisation that acts as the voice for the employee share ownership industry, today released details of their annual employee share ownership survey – offering the most comprehensive picture of employee share ownership available in the UK.

Approximately 5 million UK employees are currently participating in some form of employee share plan. The vast majority of these are doing so in a Share Incentive Plan (SIP) or a Save As You Earn (SAYE) scheme.

SAYE:

The average amount of money being saved in an SAYE scheme in 2007 rose to £89 a month, up from £71 in 2006
Almost 50 new SAYE plans were introduced in the UK
Despite a small reduction in the number of live SAYE schemes being operated by companies in the UK (10 fewer in 2007 compared to 2006), there was a big increase in the number of SAYE participants - 2.3 million compared to 1.7 million in 2006.

SIP:

The average amount of money being saved in a SIP rose to £83 a month, up from £72 in 2006
Partnership shares remain the most popular type of shares, with 70% of companies operating a SIP offering such shares (although this is down from 80% in 2006)
Free shares are being offered by 27% of companies operating a SIP (up from 23% in 2006)
The trend of increasing online account facilities has continued, with 62% of companies offering their employees online access to information about the number and value of their SIP shares

Phil Hall, Head of Public Affairs at ifs ProShare, said:

“The ifs ProShare annual SIP and SAYE surveys offer a very reliable insight into employee share ownership in the UK today.

SIP & SAYE are both tax efficient savings mechanisms that can enable employees to build up a good level of savings. The significant increases in the monthly amount of money employees are saving, in both SIP & SAYE, is especially welcome given the current financial climate.

Furthermore, the fact an additional 600,000 employees are participating in an SAYE plan compared to 2006 reflects companies renewed focus on increasing participation rates.”

Hall concluded,

“Employee share plans are a relatively simple but effective method of saving, with employees gaining a stake in the company they work for and the opportunity to share in the financial successes of their employer. Our survey results suggest that increasing numbers of employees are recognising these basic facts and we naturally hope these trends continue.”

Copies of the survey results are available free of charge to all ifs ProShare members. Copies are also available to non-members at a cost of £249 + VAT. Please contact ifsproshare@ifslearning.ac.uk or call 020 7444 7104 to order.