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Financial Participation

Since the 1990s employee financial participation and profit-sharing in particular have been encouraged by the Finnish government, mainly via new legal regulations and initiatives. The most recent reform came into force on 1 January 2011.

 

 

According to the European Working Conditions Survey (EWCS, 2010) the incidence of share ownership schemes in Finland is 2.1% (in companies with more than 250 employees).1 The incidence of profit-sharing schemes is 23.6%.2 According to the results of the ECWS 2010 profit-sharing schemes are more widespread in Finland than in any other European country. This is confirmed by the Cranet Study of 2011, which surveyed HR managers from 29 countries. In this study, too, Finland came top among all the surveyed countries with regard to the incidence of profit-sharing schemes in companies with 100 or more employees.3 These results are mirrored by the European Company Survey, a survey of more than 27,000 HR managers in Europe conducted in 2009. According to it, 23% of private-sector Finnish companies with 10 or more employees offer their employees a profit-sharing scheme (the 30-country European average is 14%). The prevalence of employee profit sharing schemes in Finland varies greatly dependent on company size. Thus 20% of companies with 10–49 employees, 37% with 50–199 employees, and 34% of companies with more than 200 employees have a profit-sharing scheme.4 According to the results of the European Company Survey, 5% of Finnish private-sector companies offer their employees share ownership schemes, in line with the European average.5

Wilke, Maack and Partner (2014) Country reports on Financial Participation in Europe. Prepared for www.worker-participation.eu. Reports first published in 2007 and fully updated in 2014.