Employee participation, job quality, and inequality

Abstract

Purpose

The purpose is to review the effects of employee participation (EP) in decision-making, ownership and profit on job quality, worker well-being and productivity, and derive policy recommendations from the findings.

Design/methodology/approach

The authors summarise results of “declining labour power”, plus theoretical arguments and empirical evidence for the benefits of EP for job quality, satisfaction and productivity.

Findings

Worker well-being and job satisfaction are ignored unless they contribute directly to profitability. EP is needed to remedy this situation when employers have market power and unions are weak. The result can be a rise in both productivity and well-being.

Research limitations/implications

The chief issue here is that there are data limitations, particularly on the well-being effects of participation.

Practical implications

Lots of encouraging examples in many countries need legislative help to multiply.

Social implications

It is quite possible that there could be major implications for welfare and employment.

Originality/value

The authors make the case for public sector subsidies for employee buyouts and new cooperative start-ups, as well as legislation for works councils and profit sharing.

Citation

FitzRoy, F.R. and Nolan, M.A. (2022), "Employee participation, job quality, and inequality", Journal of Participation and Employee Ownership, Vol. 5 No. 1, pp. 1-13. https://doi.org/10.1108/JPEO-05-2020-0014