With proven commercial benefits, businesses explore employee ownership as a forward-thinking alternative to traditional models where profits are solely enjoyed by top execs and founders. In short, it’s a brilliant way of doing business, that benefits all employees.
Statistically, EO businesses achieve more growth and can be more profitable. They’re found to be resilient, agile and better at weathering economic challenges.
In the UK alone, EO businesses have a combined turnover of tens of billions of pounds. What’s more, when employees are owners, they’re happier, more engaged, and are collectively more productive.
They’re well-liked by their communities, have a reputation for being trusted, fair to both consumers & suppliers and attractive to those seeking employment.
WHO’S IT FOR?
Let’s start with business founders who are thinking of moving on. You’ve built up your business and have a great team. Selling to a competitor or getting gobbled up by the highest bidder can be unpalatable and might mean saying goodbye to your brand, seeing your workforce dismantled or product line changed.
Selling to your employees benefits both you AND them. They know your business best.
Don’t worry – they don’t need the funds upfront. You can be bought out against future profitability to a schedule that suits you, including blending this with some borrowing or using surplus cash, so your short-term needs are met as well as having long term security.
By selling to your employees you can also negotiate your future involvement… Be an advisor, be on the board, pop in for a cup of tea every Friday or say goodbye altogether…
Many dynamic start-ups are choosing this model because it cements an engaged culture from the off and gives them a competitive edge in attracting and retaining talented employees. Businesses in need of a boost can look to Employee Ownership as a way to galvanise and re-focus. And, not-for-profit organisations, CICs and charities can use Employee Ownership to make their team feel more valued and give employees a voice.
We’ve helped a growing number of public services become employee-run, because it’s the employees who know the communities they serve the best. Sometimes these are called Public Service Mutuals.
All kinds of businesses can benefit from employee ownership, including yours.
There are tax breaks when you move to Employee Ownership, because governments recognise the value of EO businesses to the economy.
So, you see, there are many reasons you should be considering employee ownership. Whether you’re a business owner, or an employee, like me!
Our video was made by Tom Nelson from This World Can.