Labour Research July 2019

European news

Worker directors lift performance


A new study of 560 European companies has found that those with employee representatives on their supervisory boards — bodies setting the companies’ strategic direction and monitoring progress — performed better during and after the 2008 financial crisis than those without any employee participation at this level. 


The analysis, published in June, compared German companies that had employee participation with non-German companies where employees were not represented. 


After taking account of other characteristics, like industry, size and diversification, it concluded that the companies with employee board-level representation had been more successful, in part because they were more willing to take a long-term view. 


This had a positive effect on employment which, during the period after the crisis, grew by 2.1% in companies with employees on the board while it fell by 1.9% in companies where they were not represented.