Released on February 10, 2010
Businesses that have taken advantage of a government program that assists employers to share ownership with employees have seen a 30 to 50 per cent jump in employee performance and productivity.
Under the Employee Investment Program, the government is encouraging employees to invest in their places of work by registering an employee fund and receive a 20 per cent provincial tax credit and a 15 per cent federal tax credit on the first $5,000 they contribute each year.
"Right now we have 36 companies registered in the program which has resulted in benefits being enjoyed by the employer and employee," Enterprise Minister Ken Cheveldayoff said. "We want to see this expand. As we enter this tax season I want to encourage small businesses in Saskatchewan to take advantage of this program and boost employee morale and business productivity."
The program, managed by Enterprise Saskatchewan, operates with employees setting up and investing through a venture capital fund, which in turn invests in their employer's company.
For employers, the program helps create a more engaged and productive workforce by allowing employees to work knowing they are owners. Employers can also use the program effectively to promote recruitment and retention and even succession planning. The fund can provide equity capital for business expansion.
The Labour Sponsored Venture Capital Corporation (LSVCC) fund is created by willing employees and agreed to by a willing employer. Eligible companies must be corporations or co-operatives with between five and 500 employees who reside in Saskatchewan and have at least 25 per cent of salaries paid to employees in Saskatchewan. For more information go to www.enterprisesaskatchewan.ca.
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For more information, contact:
Tim Tororey
Enterprise Saskatchewan
Regina
Phone: 306-787-5582
Email: tim.tororey@enterprisesask.ca