engleski

Determinants of financial participation - Two decades of Croatian practice

The chapter presents the national context, trends and determinants of employee financial participation (EFP) in medium and large-sized organisations in Croatia. Transition and post-transition economies usually exhibit a low incidence of EFP schemes when compared to free market economies, and Croatia is no exception. Even though Croatia has inherited a long tradition of employee participation in the form of the unique self-management model, the current legal and fiscal framework is not supportive of EFP. Empirical findings based on the Cranfield Network on International Human Resource Management (CRANET) survey conducted in 2014 revealed that approximately only ten per cent of organisations in Croatia offer all EFP schemes (profit sharing, stock sharing and stock options) to all employees, and that on average, only around ten per cent of employees are given the opportunity to participate financially. Furthermore, the study identified stock options as the most present, and profit sharing as the least present EFP scheme in Croatia. Finally, after analysing 39 different determinants of EFP in the Croatian context, the establishment age, profitability, proportion of annual payroll costs spent on training, the human resource (HR) director’s years of service for the organisation and the HR director’s years of service in human resource management were found to be the primary determinants of EFP in Croatia.

employee financial participation, profit-sharing, stock-sharing, CRANET

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